Exam Review

Define the study of Economics: Economics is the study of how societies allocate scarce resources to satisfy unlimited wants and needs.

Explain opportunity cost: Opportunity cost is the value of the next best alternative that must be sacrificed when making a decision. It represents the potential benefits you forgo when choosing one option over another.

Describe the concept of marginal change: Marginal change refers to the incremental adjustments to an existing plan or action. It involves analyzing the additional costs and benefits of a small change in quantity.

What is the “Invisible Hand” and how does it work? The "Invisible Hand" is a concept coined by Adam Smith, suggesting that individuals pursuing their self-interest inadvertently benefit society as a whole. It works through the price mechanism in competitive markets, guiding resources to their most efficient use.

Why might a government intervene in a market? Governments might intervene in a market to correct market failures such as externalities (e.g., pollution), to provide public goods (e.g., national defense), to promote equity, or to ensure stability.

Describe the term inflation and list its causes: Inflation is a sustained increase in the general price level of goods and services in an economy. Causes include excessive money supply growth, demand-pull inflation (high demand), and cost-push inflation (rising production costs).

Describe the two economic models discussed in class: Without specific context on which models were discussed, two common economic models include:

• The Circular Flow Model: Illustrates the flow of goods, services, and money between households and firms.

• The Production Possibilities Frontier (PPF): Shows the maximum combinations of goods and services an economy can produce with its available resources and technology.

Outline the differences in the circular flow diagram in markets for goods and services vs. markets for factors of production: In markets for goods and services, households are buyers and firms are sellers. In markets for factors of production (e.g., labor), households are sellers and firms are buyers.

Explain the difference between points inside of, on and outside of the production possibilities frontier:

• Points inside the PPF represent inefficient use of resources.

• Points on the PPF represent efficient use of resources.

• Points outside the PPF are unattainable with current resources and technology.

What causes expansions of the production possibility frontier? Expansions of the PPF are caused by increases in resources (e.g., more labor, capital) or improvements in technology.

Explain the differences between macroeconomics and microeconomics:

• Macroeconomics studies the economy as a whole, focusing on issues like inflation, unemployment, and economic growth.

• Microeconomics studies individual behavior of households and firms in making decisions and how they interact in specific markets.

What’s the difference between efficiency and equality?

• Efficiency means using resources in a way that maximizes the production of goods and services.

• Equality means distributing economic prosperity uniformly among the members of society.

Describe the concept of thinking at the margin: Thinking at the margin involves evaluating the incremental costs and benefits of making a decision. Individuals should take action only when the marginal benefits exceed the marginal costs.

What is an incentive and how does it apply to policy making? An incentive is something that induces a person to act. In policy making, incentives are used to encourage or discourage certain behaviors. For example, taxes can discourage pollution, while subsidies can encourage renewable energy.

Explain the difference between a market and a command economy:

• A market economy allocates resources through the decentralized decisions of many firms and households as they interact in markets.

• A command economy allocates resources through central planning by the government.

Describe the terms property rights, market failure, market power and market externalities:

• Property rights are the rights of individuals to own and control resources.

• Market failure occurs when the market fails to allocate resources efficiently.

• Market power is the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices.

• Market externalities are the uncompensated impact of one person’s actions on the well-being of a bystander.

Explain what causes an outward shift of the production possibility frontier: An outward shift of the PPF is caused by an increase in resources or technological advancements.

Explain the terms efficient, inefficient, feasible and infeasible using points on the production possibilities frontier:

• Efficient: Points on the PPF.

• Inefficient: Points inside the PPF.

• Feasible: Points on or inside the PPF.

• Infeasible: Points outside the PPF.

Explain the difference between macroeconomics and microeconomics: (Same as #11)

• Macroeconomics studies the economy as a whole.

• Microeconomics studies individual behavior in markets.

What is the difference between absolute and comparative advantage?

• Absolute advantage is the ability to produce a good using fewer inputs than another producer.

• Comparative advantage is the ability to produce a good at a lower opportunity cost than another producer.

Create a question which, when solved, portrays absolute and comparative advantage: Example: Suppose Farmer A can produce 10 bushels of wheat or 5 bushels of corn in an hour, while Farmer B can produce 5 bushels of wheat or 10 bushels of corn in an hour. Who has the absolute and comparative advantage in producing each good?

What is the outcome on the production possibilities frontier when two entities engage in mutually beneficial trade? When two entities engage in mutually beneficial trade, they can consume outside their individual PPFs, leading to higher overall welfare.

Which products are the most efficient for countries to import? Countries should import products for which they have a comparative disadvantage in producing.

Define the law of supply and the law of demand:

• The law of supply states that, other things equal, the quantity supplied of a good rises when the price of the good rises.

• The law of demand states that, other things equal, the quantity demanded of a good falls when the price of the good rises.

Explain equilibrium point, surplus and shortage:

• Equilibrium point is where the supply and demand curves intersect, representing the market-clearing price and quantity.

• Surplus occurs when the quantity supplied exceeds the quantity demanded.

• Shortage occurs when the quantity demanded exceeds the quantity supplied.

Explain the occurrences that will shift the demand curve: Shifts in the demand curve are caused by changes in factors such as income, tastes, expectations, and the prices of related goods.

Explain the occurrences that will shift the supply curve: Shifts in the supply curve are caused by changes in factors such as input prices, technology, expectations, and the number of sellers.

Explain the determinants of price elasticity of demand and supply:

• Price elasticity of demand is determined by factors such as availability of close substitutes, whether the good is a necessity or luxury, the definition of the market, and the time horizon.

• Price elasticity of supply is determined by factors such as the ability of sellers to change the amount of the good they produce, time horizon, and availability of inputs.

Be able to calculate the price elasticity of supply and demand with both methods: Price elasticity of demand = (\frac{\% \text{ change in quantity demanded}}{\% \text{ change in price}}). Price elasticity of supply = (\frac{\% \text{ change in quantity supplied}}{\% \text{ change in price}})

Explain how price elasticity of demand can affect total revenue:

• If demand is elastic, a decrease in price will increase total revenue.

• If demand is inelastic, a decrease in price will decrease total revenue.

• If demand is unit elastic, a change in price will not affect total revenue.

Outline the difference between unit elastic, perfectly elastic and perfectly inelastic:

• Unit elastic: Elasticity equals 1.

• Perfectly elastic: Elasticity is infinite.

• Perfectly inelastic: Elasticity equals 0.

Define and describe the pros and cons of sole proprietorships, partnerships, corporations, cooperatives, crown corporations, nonprofits and franchises:

• Sole Proprietorship: Owned and run by one person.

  • Pros: Easy to set up, full control.

  • Cons: Unlimited liability, limited resources.

• Partnership: Owned and run by two or more people.

  • Pros: More resources, shared responsibility.

  • Cons: Unlimited liability, potential for disagreements.

• Corporation: Separate legal entity owned by shareholders.

  • Pros: Limited liability, easier to raise capital.

  • Cons: Double taxation, more regulation.

• Cooperative: Owned and operated for the benefit of its members.

  • Pros: Democratic control, benefits shared among members.

  • Cons: Slow decision-making, limited capital.

• Crown Corporation: Owned by the government.

  • Pros: Serves public interest, stable funding.

  • Cons: Political interference, potential inefficiency.

• Nonprofit: Operates for a social mission rather than profit.

  • Pros: Tax-exempt, attracts donations.

  • Cons: Reliance on donations, strict regulations.

• Franchise: Business model where one party grants another the right to use its trademark and business system.

  • Pros: Established brand, support from franchisor.

  • Cons: High initial investment, royalties.

Describe the 4 different market structures and the factors which affect them:

• Perfect Competition: Many small firms, identical products, easy entry.

• Monopolistic Competition: Many firms, differentiated products, relatively easy entry.

• Oligopoly: Few large firms, can be differentiated or identical products, barriers to entry.

• Monopoly: One firm, unique product, high barriers to entry.

Outline the 3 goals of economic policy:

• Economic Growth: Increase in the production of goods and services.

• Price Stability: Keeping inflation low and stable.

• Full Employment: Minimizing unemployment.

Explain the concepts of price floors, price ceilings, quotas and subsidies:

• Price floor: A minimum price set by the government above the equilibrium price.

• Price ceiling: A maximum price set by the government below the equilibrium price.

• Quota: A limit on the quantity of a good that can be produced or imported.

• Subsidy: A government payment to producers to lower their costs.

Describe the commodities market and the ways in which it is used: A commodities market is where raw materials or primary agricultural products are traded. It is used for hedging risk, speculation, and price discovery.

Compare and contrast bonds, stocks, real estate, mutual funds and ETFs:

• Bonds: Debt instruments where investors lend money to a borrower.

• Stocks: Represent ownership in a corporation.

• Real Estate: Property consisting of land and buildings.

• Mutual Funds: Investment vehicles that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other assets.

• ETFs (Exchange-Traded Funds): Similar to mutual funds but trade like stocks on an exchange.

Explain the difference between direct demand and derived demand:

• Direct demand: Demand for a final good or service.

• Derived demand: Demand for a factor of production that is used to produce the final good or service.

Describe the labour demand curve and the factors which shift it: The labor demand curve shows the relationship between the wage rate and the quantity of labor demanded. Factors that shift it include changes in product demand, technology, and input prices.

Explain the concept of diminishing marginal return: Diminishing marginal returns is the decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, while holding all other factors of production equal.

Describe the labour supply curve and the factors which shift it: The labor supply curve shows the relationship between the wage rate and the quantity of labor supplied. Factors that shift it include changes in population, tastes, and alternative opportunities.

Describe the concepts of push and pull factors when it comes to immigration and list a variety of specific push and pull factors:

• Push factors: Reasons that compel people to leave their home country (e.g., poverty, war, persecution).

• Pull factors: Reasons that attract people to a new country (e.g., economic opportunities, political freedom, better living conditions).

Outline the advantages and disadvantages of immigration in Canada:

• Advantages: Increased labor force, economic growth, cultural diversity.

• Disadvantages: Strain on public services, potential wage suppression, cultural integration challenges.

Explain how immigration in Canada and America has benefited business within those countries: Immigration often leads to a larger and more diverse labor pool, increased innovation, and greater consumer demand, all benefiting businesses.

List 4 well-known immigrant success stories in Canada: Examples could include entrepreneurs, artists, scientists, or politicians who have made significant contributions to Canadian society.

Explain the difference between debt and deficits: Debt is the accumulation of past deficits, while a deficit is the shortfall of government revenue compared to government spending in a given year.

Compare the debt to GDP ratio in both Canada and the US: The debt-to-GDP ratio is a measure of a country's debt relative to its economic output. Comparing this ratio between Canada and the US provides insight into each country's fiscal health.

Explain how governments generate revenue: Governments generate revenue through taxes (e.g., income tax, sales tax, property tax), fees, and borrowing.

List 3 countries who’ve experienced government default: Argentina, Greece, and Venezuela are examples of countries that have experienced government default.

Describe the characteristics of the Canadian elementary and secondary education system: The Canadian education system is publicly funded, decentralized, and administered by provincial and territorial governments.

Describe the terms underemployment, human capital theory, signaling and college wage premium:

• Underemployment: Situation where workers are employed in jobs below their skill level or working part-time but desiring full-time work.

• Human Capital Theory: Education and training increase a worker's productivity and earnings.

• Signaling: Education signals to employers that a worker is intelligent and disciplined.

• College Wage Premium: Increased earnings associated with having a college degree.

Describe the 3 philosophies economists provide for improving education: Focus on skills (teaching applicable skills), Focus on productivity (teaching basic skills), more funding.

Explain the terms, OHIP, premiums, deductibles with respect to health insurance:

• OHIP (Ontario Health Insurance Plan): Ontario's government-funded health insurance program.

• Premiums: Payments made to an insurance company to maintain coverage.

• Deductibles: The amount a policyholder must pay out-of-pocket before insurance coverage begins.

Compare and contrast the following healthcare models: socialized healthcare, Medicaid, Medicare, single-payer system, privatized system:

• Socialized Healthcare: Government owns and operates healthcare facilities and employs healthcare professionals (e.g., Cuba).

• Medicaid: US government program providing healthcare to low-income individuals and families.

• Medicare: US government program providing healthcare to the elderly and disabled.

• Single-Payer System: Healthcare system where the government is the primary payer (e.g., Canada).

• Privatized System: Healthcare system where private companies provide and fund healthcare services (e.g., US).

Outline 3 common myths of the Canadian healthcare system: Long wait times, doctors are employed by government, lower quality.

Explain the differences between wealth and income inequality:

• Wealth inequality: Unequal distribution of assets (e.g., property, stocks).

• Income inequality: Unequal distribution of earnings.

Describe the current income distribution situation in the world today: Income is highly concentrated in developed countries, with significant disparities both between and within countries.

Explain the following unemployment concepts: technical, cyclical, frictional, replacement, structural, seasonal, full employment, participation rate:

• Frictional Unemployment: Unemployment due to the time it takes workers to search for a job.

• Structural Unemployment: Unemployment due to a mismatch between the skills workers have and the skills employers need.

• Cyclical Unemployment: Unemployment due to fluctuations in the business cycle.

• Seasonal Unemployment: Unemployment due to seasonal variations in employment.

• Full Employment: The level of employment when there is no cyclical unemployment.

Describe the 3 structural and 7 relief strategies governments use to combat poverty: Examples include social welfare programs, job training, and education initiatives.

Explain the terms marginal product and marginal revenue product of labour (MRPL) and use them to determine optimal hiring:

• Marginal Product of Labour: The additional output produced by hiring one more unit of labour.

• Marginal Revenue Product of Labour: The additional revenue generated by hiring one more unit of labour.

Describe the components of GDP and its relationship to AD: GDP (Gross Domestic Product) components include Consumption, Investment, Government Spending, and Net Exports. AD (Aggregate Demand) is the total demand for goods and services in an economy at a given price level and time period.

Discuss the difference between the interest rate effect and the wealth effect:

• Interest Rate Effect: A change in the price level affects interest rates and, consequently, investment and aggregate demand.

• Wealth Effect: A change in the price level affects the real value of household wealth and, consequently, consumer spending and aggregate demand.

Outline the shifters of AD and AS and be able to graph the effects of changes in the components of GDP on the AD/AS curve:

• AD Shifters: Changes in consumption, investment, government spending, net exports.

• AS Shifters: Changes in input prices, technology, and institutions.

Explain the difference between AD, SRAS and LRAS:

• AD (Aggregate Demand): Total demand for goods and services in an economy.

• SRAS (Short-Run Aggregate Supply): Total supply of goods and services in an economy in the short run.

• LRAS (Long-Run Aggregate Supply): Total supply of goods and services in an economy when all factors of production are fully employed.

Describe what is occurring at Equilibrium AD and Equilibrium AS: At equilibrium, the quantity of goods and services demanded equals the quantity supplied, determining the price level and output level in the economy.

Explain the concept of supply shocks and their impact on the AS curve: Supply shocks are unexpected events that change the supply of goods and services in an economy. Negative supply shocks shift the AS curve to the left, while positive supply shocks shift it to the right.

Explain the term stagflation and how shifts in AS can lead to stagflation: Stagflation is a combination of slow economic growth and high inflation. Shifts in the AS curve, particularly negative supply shocks, can lead to stagflation.

Outline the difference between inflationary and recessionary gaps and how they are created through shifts in AD:

• Inflationary Gap: When AD exceeds the long-run aggregate supply (LRAS) at the current price level, leading to inflation.

• Recessionary Gap: When AD is below the LRAS at the current price level, leading to recession.

• Created Through Shifts in AD: These gaps are caused by shifts in the aggregate demand curve.

Describe the variable being measured in the business cycle graph: The business cycle graph measures real GDP (Gross Domestic Product) over time.

Explain the various stages of the business cycle and how unemployment and inflation are affected at the various stages:

• Expansion: Increasing GDP, decreasing unemployment, rising inflation.

• Peak: Highest point of GDP, low unemployment, high inflation.

• Contraction: Decreasing GDP, increasing unemployment, falling inflation.

• Trough: Lowest point of GDP, high unemployment, low inflation.

Define the term recession: A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Outline the difference between a leading and a lagging indicator:

• Leading Indicators: Predict future economic activity.

• Lagging Indicators: Reflect past economic activity.

Describe the Consumer Price Index: The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Describe the terms bank rate, deposit rate, overnight rate, operating band, policy interest rate and prime rate and explain how they interact to control the value of the currency, interest rates and inflation:

• Bank Rate: The interest rate at which the central bank lends money to commercial banks.

• Deposit Rate: The interest rate at which commercial banks park their money at the central bank.

• Overnight Rate: The interest rate at which commercial banks lend to one another for a period of 24 hours.

• Operating Band: The +/-0.25% band the Bank of Canada tries to keep the overnight rate in.

• Policy Interest Rate: The target overnight rate published by the Bank of Canada 8 times per year.

• Prime Rate: The interest rate commercial banks charge their best customers.

Describe the 4 alternative economic development models we’ve studied in unit 3 - Genuine Progress Indicator, Human Development Index, Happy Planet Index and Gross National Happiness:

• Genuine Progress Indicator (GPI): Accounts for environmental and social factors in addition to economic output.

• Human Development Index (HDI): Measures a country's average achievements in three basic aspects of human development: health, knowledge, and a decent standard of living.

• Happy Planet Index (HPI): Measures the environmental efficiency with which countries deliver long, happy, and sustainable lives for their citizens.

• Gross National Happiness (GNH): A holistic measure of development that considers psychological well-being, health, education, cultural diversity, good governance, community vitality, ecological diversity and resilience, living standards, and time use.

Explain the concept of fiscal policy including the tools used by the government: Fiscal policy is the use of government spending and taxation to influence the economy. Tools include government spending, tax rates, and transfer payments.

Describe the difference and usage between contractionary and expansionary fiscal policy:

• Contractionary Fiscal Policy: Used to reduce inflation by decreasing government spending or increasing taxes.

• Expansionary Fiscal Policy: Used to stimulate economic growth by increasing government spending or decreasing taxes.

Explain the concepts of discretionary vs. non-discretionary fiscal policy including the idea of automatic stabilizers:

• Discretionary Fiscal Policy: Deliberate changes in government spending or taxation.

• Non-Discretionary Fiscal Policy: Automatic responses to economic conditions, such as unemployment benefits.

• Automatic Stabilizers: Policies that automatically moderate economic fluctuations.

Compare and contrast classical economic theory and Keynesian economic theory:

• Classical Economic Theory: Emphasizes self-regulating markets and limited government intervention.

• Keynesian Economic Theory: Emphasizes the role of government in stabilizing the economy through fiscal and monetary policy.

Describe the concept of a multiplier and explain the difference between the marginal propensity to consume and the marginal propensity to withdraw:

• Multiplier Effect: The proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.

• Marginal Propensity to Consume (MPC): The proportion of an increase in income that is spent on consumption.

• Marginal Propensity to Withdraw (MPW): The proportion of an increase in income that is not spent on consumption (i.e., saved, taxed, or spent on imports).

Be able to calculate both MPC, MPW and the impact on GDP of the multiplier (see pages 234-235 in your textbook): GDP Effect = (1 / MPW)Initial Spending Increase

Outline the differences between a structural and a cyclical deficit:

• Structural Deficit: The part of the budget deficit that would exist even if the economy were operating at its full potential.

• Cyclical Deficit: Portion of the budget deficit caused by a downturn in the business cycle.

Discuss the different types of lags with respect to policy decisions:

• Recognition Lag: The time it takes to recognize an economic problem.

• Decision Lag: The time it takes to decide on a policy response.

• Implementation Lag: The time it takes to implement the policy.

• Impact Lag: The time it takes for the policy to have an effect.

Define the terms surplus, balanced and deficit with respect to budgets:

• Surplus: Government revenue exceeds government spending.

• Balanced: Government revenue equals government spending.

• Deficit: Government spending exceeds government revenue.

Explain how special interest groups influence government and which branches of government they most often lobby in both Canada and the US: Special interest groups influence government through lobbying, campaign contributions, and public advocacy. They often target the legislative and executive branches.

Describe the following definitions of the money supply M0, M1, M2, M3:

• M0: Monetary base (currency in circulation and commercial banks' reserves).

• M1: Currency in circulation plus checkable deposits.

• M2: M1 plus savings deposits, money market accounts, and small-denomination time deposits.

• M3: M2 plus large-denomination time deposits and institutional money market funds.

Describe the Canadian banking system including the branch system, fractional reserve banking, the reserve ratio and the 3 broad categories of financial institutions:

• Canadian Banking System: The Canadian banking system includes a branch system, fractional reserve banking, a reserve ratio, and three broad categories of financial institutions (chartered banks, trust and loan companies, and credit unions/caisses populaires).

Be able to calculate the Deposit (Money) Multiplier in a multi-bank system (see page 260 in your text): Money Multiplier = 1 / Reserve Ratio

Explain the difference between a hard and a soft currency:

• Hard Currency: Widely accepted and stable currency (e.g., USD, EUR).

• Soft Currency: Currency with fluctuating value and limited acceptance.

Explain the difference between floating, fixed and pegged currencies

• Floating Currencies: Exchange rate is determined by market forces.

• Fixed Currencies: Exchange rate is set by the government.

• Pegged Currencies: Exchange rate is fixed to another currency or basket of currencies.

Understand the impact of the 4 shifters of the foreign exchange market: The four shifters include changes in tastes, changes in relative income, changes in relative interest rates, and changes in relative inflation.

Describe the 3 ways a government can manipulate its currency exchange rate:

• Intervention: Buying or selling its own currency.

• Interest Rate Adjustments: Raising or lowering interest rates.

• Capital Controls: Restricting the flow of capital in and out of the country.

List and describe the various forms of trade barriers

• Tariffs: Taxes on imports.

• Quotas: Limits on the quantity of imports.

• Subsidies: Government payments to domestic producers.

• Embargoes: Complete bans on trade with a particular country.

Outline the impact on supply and demand in markets where tariffs are imposed: Tariffs increase the price of imports, decreasing demand and increasing domestic supply.

Explain why governments use trade barriers: Governments use trade barriers to protect domestic industries, raise revenue, and promote national security.

Explain the concept of protectionism and be able to create real examples of protectionist policies: Protectionism is the policy of protecting domestic industries from foreign competition through trade barriers. Examples include tariffs on steel imports and quotas on agricultural products.

Describe the term trade organizations and outline Canada’s involvement in them: Trade organizations are groups that promote and regulate international trade. Canada is involved in organizations such as the WTO, NAFTA/CUSMA, and APEC.

Be able to describe the WTO, OPEC, APEC, G7, G20, IMF and World Bank:

• WTO (World Trade Organization): Regulates international trade.

• OPEC (Organization of the Petroleum Exporting Countries): Coordinates oil policies among member countries.

• APEC (Asia-Pacific Economic Cooperation): Promotes trade and investment in the Asia-Pacific region.

• G7 (Group of Seven): Forum for major industrialized democracies.

• G20 (Group of Twenty): Forum for major economies to discuss global issues.

• IMF (International Monetary Fund): Promotes international financial stability.

• World Bank: Provides loans and grants to developing countries.

Define the terms poverty line, living wage, absolute poverty and explain the current state of poverty around the world

• Poverty Line: Minimum level of income deemed adequate in a particular country.

• Living Wage: Minimum income necessary to meet basic needs.

• Absolute Poverty: Deprivation of basic human needs.

Describe the term leapfrogging and outline the impacts of globalization: Leapfrogging is when developing countries bypass older technologies and adopt newer ones directly.

Discuss the current state of the Canadian economy with respect to interest rates, inflation, business investment and access to credit: Current conditions can be obtained from recent financial news and reports.

Discuss the Global challenges we face in 2025 due to emerging powers, economic shifts, and the rising influence of non-state actors: Examples include climate change, geopolitical tensions, and technological disruptions.

Describe the term NGO: A non-governmental organization (NGO) is a non-profit, voluntary citizens' group which is organized on a local, national or international level to address issues in support of the public good.

Outline the broad categories of NGOs, the 4 types of NGOs and how NGOs are funded:

• Broad Categories: Operational NGOs (direct implementation), Advocacy NGOs (policy change).

  Four Types: Charitable, Service, Participatory, Empowering.

  Funding: Donations, grants, membership fees, and sometimes government funding.

Provide real-world examples of the 4 types of NGOs:

• Charitable: Provides aid to those in need (e.g., Red Cross).

• Service: Delivers services like healthcare or education (e.g., BRAC).

• Participatory: Involves local communities in projects (e.g., local environmental groups).

• Empowering: Aims to empower people to take control of their lives (e.g., women's rights organizations).

Be able to explain the focus, geographical presence and funding sources for Mercy Corps, Heifer International, Wikimedia Foundation, CERES Coalition and CARE:

• Mercy Corps: Focuses on humanitarian aid and development; operates globally; funded by donations, grants, and partnerships.

• Heifer International: Focuses on ending hunger and poverty through sustainable agriculture; operates globally; funded by donations and grants.

• Wikimedia Foundation: Focuses on providing free educational content (Wikipedia); operates globally; funded by donations.

• CERES Coalition: Focuses on sustainable business practices and environmental protection; operates primarily in North America; funded by membership fees and grants.

• CARE: Focuses on poverty reduction and social justice, with a special emphasis on women and girls; operates globally; funded by donations and grants.

Define the term Social Justice: Social Justice is the view that everyone deserves equal economic, political and social rights and opportunities. Social justice aims to create a fair and equitable society in which each person and group is able to participate fully in all aspects of society and has equal access to resources.

Outline various forms of social and economic justice: These include distributive justice (fair allocation of resources), procedural justice (fair decision-making processes), and restorative justice (repairing harm and restoring relationships).

Challenges in 2025: Climate change, geopolitical instability, economic inequality, cybersecurity, and global health crises. A coordinated global response is needed.

NGO definition: A non-governmental organization (NGO) is a non-profit, voluntary citizens' group that operates independently of governments to address issues in support of the public good.

Categories and types of NGOs:

• Broad categories: Operational NGOs (direct implementation) and Advocacy NGOs (policy change).

• Four types: Charitable, Service, Participatory, and Empowering.

• Funding: Donations, grants, membership fees, and some government funding.

Examples of NGO types:

• Charitable: Red Cross.

• Service: BRAC.

• Participatory: Local environmental groups.

• Empowering: Women's rights organizations.

• Focus, presence, and funding of specific NGOs:

• Mercy Corps: Humanitarian aid and development; global; donations, grants, partnerships.

• Heifer International: Sustainable agriculture to end hunger and poverty; global; donations and grants.