Chapter 6 Class Notes: Economic Systems

Flashcards covering key vocabulary and concepts related to economic systems.

Economics

The study of how people choose to use their scarce resources in order to produce and buy goods and services they want.

Economic Systems

A way a nation answers the three basic economic questions.

Scarcity

Limited supply of resources or money

Capital

Money needed to provide and buy goods and services

Privately Owned

Resources owned by individuals or private businesses.

Publicly Owned

Resources owned and managed by the government.

Public Good

Services and resources that benefit all members of society, often provided by the government.

Shift Left

More government involvement in the economy.

Shift Right

Less government involvement in the economy.

Consumers

People who pay for goods and services.

Demand

The desire of purchasers, consumers, clients, employers, etc., for a particular commodity, service, or other item.

Producers

People who make or provide goods and services.

Supply

The quantity of something that producers have available for sale

Competition

Rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion.

Unemployment Rate

The percentage of the labor force that is jobless.

Strike

A work stoppage caused by the mass refusal of employees to work.

Collective Bargaining

Negotiation of wages and other conditions of employment by an organized body of employees.

Labour Union

An organized association of workers, often in a trade or profession, formed to protect and further their rights and interests.

Land

Not only the space needed to produce, but also the natural resources in the land (oil, minerals, water, trees, etc.).

Labour

The physical and mental effort needed to produce goods and services.

Capital

The money people own or borrow plus investments in buildings and machinery.

Planned Economy

An economic system in which the government makes all decisions about production and distribution.

Market Economy

An economic system in which individuals and private businesses make the decisions about production and distribution.

Mixed Economy

An economic system that combines private ownership and government involvement.

Crown Corporations

A company owned by the Canadian government to provide products and services.

Privatization

The selling of government owned businesses to private companies.