Example Of Economic Glossary Terms
Define the following terms to as part of your economic glossary terms for this course. For this assignment define the term in your own words. Next in your own words using a couple of sentences provide a real life example demonstrating that you understand the term.
For example: Economics
a. Definition of Economics: Is the study of how people, companies, governments and countries make choices on allocating finite resources to satisfy their needs and wants. (http://www.investopedia.com/terms/e/economics.asp).
b. Example: The study of economics in Canada cannot be understated, considering that many of Canada 's social welfare programs such a health care and education are dependant on Canada being a competitive is a resource …show more content…
The bank deals with monetary policy which is influencing the supply of money to keep the inflation rate low.
Definition: Bank of Canada controls the supply and circulation of money to alter inflation and interest rates. Monetary policy will stabilize prices, protect consumers, and boost the economy.
Example: Monetary policy is operated by the Crown Corporation, which is the Bank of Canada. The Bank will adjust the rates whenever it is needed. When the inflation rate is high, consumers are spending more money in the market. The Bank of Canada will increase interest rates to make consumers save money. On the other hand, if the inflation rate is very low, the Bank of Canada will decrease interest rates in order to encourage consumers to spend more money in the market to boost the economy.
Definition: A product that must be purchased in order to be used or consumed. The consumer must pay a certain price or exchange products in order to use the private good. Individuals can interfere or prevent others from consuming or using private …show more content…
(https://en.wikipedia.org/wiki/Canadian_public_debt) The United States has a national debt as high as USD 18.2 trillion.
Definition: A certain sector in the economy that deals with public or government services. Those services are normally demanded by consumers, but not provided by private businesses. The government will collect money from tax and use the money to provide those services.
Example: Health care is a great example of public sector service. The government will collect money from tax and use the money to hire doctors and build hospitals. People do not need to pay anything to see a doctor, yet they need to pay their own medical fees. private sector
Definition: A certain sector in the economy that is run by private businesses or individuals. The motivation in private sectors is profit. Those private sectors are not controlled by the government.
Example: All of the private businesses are considered as private sectors. Apple is a well-known company. It is motivated by profit and it is not controlled by the