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43 Cards in this Set
- Front
- Back
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relationship between amount that consumers are willing to purchase and its price
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demand
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relationship between quantity of a product offered for sale and it's price
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supply
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total spending in the economy as a whole in a given period
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aggregate demand
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total value of goods and services produced in a given period
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aggregate supply
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the responsiveness of the quantity demanded (or supplied) to a change in a product's price
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elasticity
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period of substantially increasing prices and decreasing value of money
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inflation
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period of substantially falling prices and rising value of money
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deflation
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as long as everything else remains the same
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cetaris paribus
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something that sounds true but is false
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hidden fallacy
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it happened after this therefore it happened because of this
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post hoc ergo propter hoc
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a limit to the amount we can produce as a country
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scarcity
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the value of the alternative that is sacrificed when all resources are allocated
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opportunity cost
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measures output that is owned by residents of Canada
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Gross National Product (GNP)
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measures production taking place only in Canada
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Gross Domestic Product (GDP)
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a ratio of a products' price to a price in the base year (1971)
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Consumer Price Index (CPI)
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people 15 or over not working but actively seeking employment
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unemployed
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people who take jobs below their capabilities
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underemployed
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people 15 or over and working
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labour force
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are students included in the labour force?
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no
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are people on workers compensation and welfare included in the labour force?
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no
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value that looks at the inflows and outflows of currency in Canada
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balance of payments
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a measure of the fluctuations in economic activity over a period of time
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business cycle
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the four periods of the business cycle are
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recession depression recovery boom
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period of economic decline for minimum of 6 months
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recession
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period of large-scale unemployment and declining levels of GNP
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depression
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the lowest point in economic activity before the economy rises
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trough
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central bank responsible for regulating the money supply in Canada
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Bank of Canada
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rate of interest paid by chartered banks on money borrowed from the Bank of Canada
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bank rate
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financial institution that sells shares and accepts deposits from members
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credit union
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excess of total expenditures over total receipts
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budget deficit
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man made resources used to produce goods and services
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capital
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economic system where free market principles and private ownership dominate
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capitalism
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economic system where centralized decision making and state ownership dominate
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communism
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economic system that stresses government ownership of major resources and centralized decisions
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socialism
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the ratio of outputs to inputs
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productivity
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lower costs due to efficiencies of large-scale production
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economies of scale
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increased costs due to inefficiences of large-scale operatoins
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diseconomies of scale
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goods or services produced in the home country and sold to another country
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exports
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goods or services produced in another country and sold to the home country
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imports
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a limit of goods that can be imported into a country in a given period
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quota
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a tax imposed on imported products
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tariff
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the return paid to those who lend money to firms or others
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interest
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a market where shares (or ownership) are exchanged
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stock market
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