CIE3M Unit 1: Economics Basics Flashcards

Fill-in-the-blank practice flashcards covering Unit 1 Economics Basics, including fundamental economic definitions, factors of production, PPC curves, business ownership structures, and economic systems.

Economics is defined as the study of how people use __________ resources to satisfy unlimited needs and wants.

scarce

__________ is the branch of economics that relates to single factors and individuals.

Microeconomics

__________ is the branch of economics concerned with the big picture, such as issues relating to the whole country.

Macroeconomics

__________ economics is fact-based, such as stating that the youth unemployment rate is $1.9\%$.

Positive

__________ economics is opinion-based, such as stating that the government should give tax cuts to employers who hire youth.

Normative

Concrete items that you can touch, see, consume, and that last over a period of time are called __________.

goods

Activities or experiences that cannot be touched but satisfy a need or want, such as attending a Blue Jays game, are called __________.

services

Basic physical requirements to sustain life, such as food, water, and shelter, are classified as __________.

needs

The psychological desire for items that are not required to sustain life is classified as a __________.

want

In economics, __________ cost is the benefit lost from the next best alternative that is given up when making a decision.

opportunity

The four factors of production required to produce goods and services are Land, Labour, Entrepreneur, and __________.

Capital

Resources that are replaced by natural processes at a rate comparable to or faster than their rate of consumption are called __________ resources.

renewable

Resources that cannot be regenerated or reused on a scale that can sustain their consumption rate are called __________ resources.

non-renewable

The skills and knowledge of a society's people are referred to by economists as __________, which is considered the single most important economic resource.

labour

An __________ is a person who has a creative idea, assumes significant accountability, and takes on inherent risks for a venture.

entrepreneur

Investing in capital equipment increases productivity and output, leading to a higher potential __________ of living.

standard

Any point located __________ the Production Possibilities Curve (PPC) illustrates that resources are not fully employed.

inside

Any point located directly __________ the Production Possibilities Curve (PPC) shows that the country is producing at maximum capacity using all factors of production.

on

A point located beyond or outside the Production Possibilities Curve (PPC) represents a goal for the future that is currently __________.

not attainable

A business owned and operated by just one person who assumes unlimited liability is a __________ proprietorship.

sole

A business structure with two or more owners who share profits, losses, and decision-making is called a __________.

partnership

In a corporation, investors benefit from __________ liability, meaning corporate losses will not exceed the amount invested.

limited

Hudson's Bay Company (HBC) is an example of a long-standing corporation founded in the year __________.

$$1670$$

A __________ Corporation is owned by a level of government to provide essential services or regulate sensitive industries.

Crown

When a Crown corporation is sold to private ownership, as occurred with Petro Canada and Air Canada, it is said to be __________.

privatized

A __________ is an enterprise owned and controlled democratically by its members on a 'one member, one vote' basis.

cooperative

The three fundamental questions of economics are 'What to produce?', 'How to produce?', and '__________ to produce?'.

For whom

In a __________ economic system, production decisions are based on traditional practices and skills passed down through generations.

Traditional

In a __________ economic system, economic activity is coordinated by individuals making independent decisions in a free marketplace.

Market

In a __________ economic system, all production decisions are made by a central authority or group of political leaders.

Command

A tax system where the tax rate increases as income increases is known as __________ taxation.

progressive

The term __________ refers to the government workers needed to manage operations when the government intervenes in the economy.

bureaucracy