Economic Foundations

Question 1

Demand

Answer 1

The quantity of a good or a service that consumers are willing to purchase at various prices and times.

Question 2

Supply

Answer 2

The quantity of a good or service that producers are willing and able to sell at various prices and times.

Question 3

Law of Demand

Answer 3

As the price of a good or service decreases the demand increases
As the price of a good or service increases the demand decreases

Question 4

Law of Supply

Answer 4

As the price of a good or service increases, the quantity of it also increases
As the price of a good or service decreases, the quantity of it also decreases

Question 5

Market Equilibrium

Answer 5

The point at which the demand and supply are equal. There is no surplus or shortage

If both demand and supply shift, so does the equilibrium.

Question 6

The Business Cycle

Answer 6

Covers the economic growth and recession

Question 7

Boom

Answer 7

High level of consumer purchasing and profits
Prices and costs also tend to rise faster
Unemployment tends to be low

Question 8

Recession

Answer 8

Falling levels of consumer spending
Lower business profits
Rising unemployment

Question 9

Slump/ Depression

Answer 9

Very weak consumer spending and business fail
Rising unemployment
Prices start falling

Question 10

Recovery

Answer 10

Consumers begin to increase their spending
Businesses start to invest again
Unemployment is still high

Question 11

For-Profit

Answer 11

Produce goods and/or services to satisfy the needs, demands, and wants of consumers to make money/ profit.

Question 12

Non- Profit

Answer 12

Raise funds for a goal that helps people/ communities (Charitable organization)

Question 13

Not-for-Profit

Answer 13

Use surplus funds to improve services to it’s members
Does NOT distribute profits back to it’s members

Question 14

Profit

Answer 14

Income left over after all costs and expenses are paid

Question 15

Expenses

Answer 15

Payments involved in running the business

Question 16

Cost

Answer 16

Money required to produce goods/services

Question 17

Solvent

Answer 17

A business is considered solvent when debts are paid and financial obligations are met.

Question 18

Sole Proprietorship

Answer 18

Owned by one person

Question 19

Partnership

Answer 19

Owned by two or more people

Question 20

Corporation

Answer 20

An artificial person represents the company

Question 21

Co-Operative

Answer 21

Owned by it’s workers or purchasers of the good/service

Question 22

Franchise

Answer 22

When a business licenses another to use its name and operating procedure

Question 23

Channels of Distribution

Answer 23

How a business delivers a good or service
Retail
Telephone Marketing
Catalogs
E-commerce

Question 24

Marketplace

Answer 24

where producers and consumers come together to buy and sell their goods and services

Question 25

Scarcity

Answer 25

The limited availability of resources compared to the unlimited wants of consumers

Question 26

Innovation

Answer 26

Developing new products or services that address emerging consumer trends (Upgrades)

Question 27

Scarcity Marketing

Answer 27

Creating a sense of urgency among consumers by highlighting limited availability. (Flash sales, limited-time offers.)

Question 28

Consumers needs and demands drive WHAT?

Answer 28

Market Demand

Question 29

Market Forces

Answer 29

The economic factors that influence the behavior of consumers and producers Driven by supply and demand

Question 30

Market Forces determine WHAT?

Answer 30

Price levels Availability Distribution of goods and services

Question 31

Monetary Policy

Answer 31

Central banks like the Bank of Canada can influence economic activity

Question 32

Fiscal Policy

Answer 32

Government spending and taxation can influence economic activity

Question 33

Globalization

Answer 33

This is when businesses develop international influence. The goal is to drive innovation and reduce prices.

Question 34

Consumer Confidence

Answer 34

Refers to how optimistic consumers are about the overall state of the economy and their personal financial situation. High confidence leads to increased spending.

Question 35

Contemporary Relevance

Answer 35

Efforts towards reconciliation and recognition of Indigenous-owned businesses and partnerships.

Question 36

Urban Economic Opportunities

Answer 36

Access to diverse job markets High wages A great influence of globalization

Question 37

Rural Economic Opportunities

Answer 37

Dependence on agriculture Vulnerable to market fluctuations

Question 38

Examples of Economic Inequality

Answer 38

Wage gaps, employment discrimination, and unequal access to resources.

Question 39

Historical Disadvantages

Answer 39

Discriminatory policies (Residen. Schools) Barriers to property ownership, business opportunities, and financial services

Question 40

Economic factors mostly affected WHO? Why?

Answer 40

marginalized groups because they had lower resilience due to lack of wealth and economic security.

Question 41

Government Response to Inequality

Answer 41

Policies aimed at economic inclusion and support for rural development

Question 42

Community-Led Solutions to Inequality

Answer 42

Indigenous economic development corporations Co-operative business models in rural areas Advocacy and support networks for marginalized groups

Question 43

Wants

Answer 43

Things that people would like to have but no not need

Question 44

Needs

Answer 44

Things that people require to survive

Question 45

Good

Answer 45

Tangible item that you purchase for money

Question 46

Service

Answer 46

Action offered by businesses in return for money

Question 47

What does 'vote with their feet' mean?

Answer 47

Consumers will go to another business if a certain one doesn't give them what they want

Question 48

Technological Advancements

Answer 48

This refers to innovations and improvements in technology that can change production processes, product offerings, and market dynamics.