Economic Systems Flashcards
(45 cards)
What is a Party Platform?
Describes what a party would do for a problem. Ex. Global warming
What’s Underground Economy?
Economic activity based on buying and selling products illegally. Ex. Black market
What are the 3 Basic Resources of an Economy?
LLC
Land - All the materials in the natural environment needed to produce goods and services.
Labor - All physical and mental effort needed to produce goods and services.
Capital - The money people own or borrow, used to purchase equipment, tools and other resources to produce goods and services.
What is a Social Program? And what are some examples?
Government funded initiatives and activities designed to improve Quality of Life.
Ex. Pensions, unemployment insurance, health insurance, education, affordable housing, child protection services, healthcare, income assistance, childcare.
What are Goods and Services?
Goods - Things we buy to increase our quality of life.
Services - Provided by the people to increase quality of life. Aim to reduce economic inequalities and promote the wellbeing of citizens.
What’s Taxation?
When the government collects taxes to pay for services/social programs.
Sales tax/GST - A tax on buying goods
Income tax - Money taken off your paycheck
Why would the government have publicly owned things?
Increases competition then they sell later.
Increase quality of life.
Health and safety
Public VS Privately owned businesses
Public - Owned by the government and paid for by taxes.
Private - Owned by the people and paid for by the people.
What are Market, Command and Mixed Economies?
Market - Privately owned businesses. Companies and people decide what to make, sell and buy. Little to no government intervention. Less government involvement.
Command - Publicly owned businesses. The government makes all the choices on what is made, how and who gets it. More government involvement.
Mixed - A mix of both private and publicly owned businesses.
What’s a Political party?
Organized groups of people with the same ideology. They seek control over the government.
What are Labor Unions?
An organization which acts to protect workers rights and freedoms. A way for workers to make collective bargaining possible.
What’s Individualism in terms of economic systems?
People are encouraged to make their own economic choices like what job to have, what to buy, or what business to start.
What does it mean to Shift Right or Shift Left?
Right - Moving more toward individualism and less government control.
Left - Moving more toward collectivism and more government involvement in the economy.
What’s Collective Bargaining?
When a group of workers come together to negotiate with their employer as a team.
What is Tax Evasion?
Misrepresenting how much you make to avoid paying taxes on that money.
What’s a consumer?
A person who buys or uses goods and services.
What’s a producer?
A person or business that makes goods or provides services.
What are Economic Systems?
The way a country organizes how to produce, distribute, and consume goods and services.
What’s a Crown Corporation?
A business owned by the government.
What is an Equilibrium?
When supply equals demand.
This means the amount of a product that producers want to sell is the same as the amount that consumers want to buy.
What is a Boycott?
When an individual or group of people decide not to buy certain products. Could be due to company policy and/or individual values.
What is GDP?
Gross Domestic Pay - Measures the total value of goods and services produced in a country over a specific period of time. Used to Gauge a countries economic health and size.
What’s consumerism?
An economic theory that links prosperity to consumer demand for goods and services.
Its also the belief that buying and owning more goods leads to happiness and success. Encourages people to focus on material things, often beyond actual needs.
What are the factors that influence consumerism?
Identity - What your purchases say about you.
Health and safety - government involvement.
Jobs - Your choice keeps people employed.
Marketing - Ads you see and hear.
Environment - Impact of purchases.
