Economics Study Notes

Key Concepts in Economics

Needs vs. Wants
  • Needs: Essential items required for basic survival.
  • Wants: Desirable items that improve quality of life but are not essential.
  • Basic Needs: Food, water, shelter, clothing.
Salary Types
  • Gross Salary: Total earnings before deductions.
  • Net Salary: Earnings after deductions (taxes, etc.).
Scarcity and Production
  • Scarcity: Limited resources compared to unlimited wants.
  • Factors of Production: Land, labor, capital, entrepreneurship.
Supply and Demand
  • Supply: Quantity of goods available.
  • Demand: Desire for goods and services.
  • Impact on pricing and market availability.
Economic Systems
  • Three Major Economic Systems:
    1. Market Economy: Free market-driven (e.g., USA).
    2. Command Economy: Government-controlled (e.g., North Korea).
    3. Mixed Economy: Combination of both (e.g., Canada).
  • Private vs. Public Sector: Distinction in ownership and control.
Government Involvement
  • Importance of government in regulating and facilitating economic activity.
Labour Unions
  • Definition: Organizations that represent worker interests.
  • Influence on Employers: Advocacy for better wages and conditions.
  • Collective Bargaining: Negotiation process between unions and employers.
Canada Labour Code
  • Governs labor relations and workplace standards.
Crown Corporations
  • Government-owned corporations (e.g., Canada Post).
  • Role in providing services and employment.
Healthcare Debate
  • Private vs. Public Healthcare: Pros and cons regarding efficiency, access, and quality of care.
Taxation
  • Examples: Income tax, sales tax, property tax.
  • Uses of Tax Dollars: Funding for schools, healthcare, infrastructure, and social programs.
Canada Health Act
  • Five Principles: Public administration, comprehensiveness, universality, portability, accessibility.
Consumerism
  • Key factors affecting consumer behavior and its impact on the economy.
Economic Indicators
  • GDP (Gross Domestic Product): Measure of a country's economic activity.
  • Boycott: Collective refusal to purchase goods from a company.
Quality of Life Influences
  • Factors such as family size, income, interest rates, and global events.
  • Effects of Interest Rates: Influence spending and saving habits.
Employment Insurance (EI) and Canada Pension Plan (CPP)
  • EI: Provides temporary financial assistance to unemployed individuals.
  • CPP: Provides financial support during retirement.
Political Decisions and Environment
  • Influence of policy-making on environmental quality and thereby on the quality of life.