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47 Cards in this Set
- Front
- Back
Define economy |
A financial and social system of how resources flow through Society from production to distribution to consumption. |
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Define economics |
The study of the choices that people companies and governments make in allocating societies resources. |
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Define macroeconomics |
The study of a country's overall economic issues such as the employment rate the gross domestic product and Taxation policies. |
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Define microeconomics |
The study of smaller economic units such as individual consumers families and individual businesses. |
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Define Fiscal policy |
Government efforts to influence the economy through taxation and spending. |
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Define budget surplus |
Overages that occur when revenues are higher than expenses over a given period of time. |
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Define budget deficit |
Shortfalls that occur when expenses are higher than Revenue over a given period of time. |
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Define federal debt |
The sum of all the money that the federal government has borrowed over the years and not yet repaid. |
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Define monetary policy |
Bank of Canada decisions that shape the economy by influencing interest rates and the supply of money. |
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Define money supply |
The total amount of money within the overall economy. |
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Define M1 money supply |
Includes all currency Plus checking accounts and traveler's checks. |
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Define M2 money supply |
Includes all of my money Supply Plus most savings account money market accounts and certificates of deposit. |
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Define open market operations |
The Bank of Canada function of buying and selling government securities which include treasury bonds notes and bills. |
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Define bank rate |
The rate of interest that the Bank of Canada charges when it loans funds to Banks. |
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Define reserve requirement |
A rule that specifies the minimum amount of reserves or funds A Bank must hold expressed as a percentage of the bank's deposits. |
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Define cdic Canada Deposit Insurance Corporation |
A federal Crown corporation that insures deposits in Banks and thrift institutions for up to $100,000 per customer per Bank. |
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Define economic system |
A structure for allocating limited resources. |
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Define capitalism |
An economic system also known as the private Enterprise or free market based on private ownership, economic freedom, and Fair competition. |
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Define pure competition |
A market structure with many competitors selling virtually identical products . Barriers to entry are quite low. |
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Define monolithic competition |
A market structure with many competitors selling differentiated products. barriers to entry are low |
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Define oligopoly |
A market structure with only a handful of competitors selling products that are either similar or different. barriers to entry are typically High |
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Define monopoly |
A market structure with one producer completely dominating the industry leaving no room for any significant competitors. Barriers to entry tend to be virtually insurmountable. |
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Define natural monopoly |
A market structure with one company as the supplier of a product because the nature of that product makes a single supplier more efficient than multiple competing. Most natural monopolies are government sanctioned and regulated. |
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Define supply |
The quantity of products that producers are willing to offer for sale at different market prices. |
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Define supply curve |
The graft relationship between price and quantity from A supplier standpoint. |
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Define demand |
The quantity of products that consumers are willing to buy at different market prices. |
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Define demand curve |
The graft relationship between price and quantity from a customer demand standpoint. |
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Define equilibrium price |
The price associated with a point at which the quantity demanded of a product equals the quantity supplied. Also known as the market price. |
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Define socialism |
An economic system based on the principle that the government should own and operate Katie Enterprise's that directly affect public welfare. |
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Define communism |
An economic and political system that calls for public ownership of virtually all Enterprises under the direction of a strong central government. |
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Define mixed economies |
Economies that embody elements of both planned and market-based economic systems. |
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Define privatization |
The process of converting government-owned businesses to private ownership. |
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Define gross domestic product |
The total value of all final goods and services produced within a nation's physical boundaries over a given period of time. |
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Define unemployment rate |
The percentage of people in the labor force of employment age who do not have jobs and are actively seeking employment. |
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Define business cycle |
The periodic contraction and expansion that occurred over time in virtually every economy. |
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Define contraction |
A. Of economic downturn marked by Rising unemployment and falling business production. |
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Define recession |
An economic downturn marked by decrease in the GDP for two consecutive quarters. |
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Define depression |
And especially deep and long-lasting recession. |
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Define recovery |
A period of rising economic growth and employment. |
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Define expansion |
A period of robust economic growth and high employment. |
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Define inflation |
A period of rising average prices across the economy. |
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Define hyperinflation |
An average monthly inflation rate of more than 50%. |
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Define disinflation |
A period of slowing average price increases across the economy. |
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Define deflation |
A period of falling average prices across the economy. |
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Define consumer price index |
A measure of inflation that evaluates the change in the weighted average price of goods and services that the average consumer buys each month. |
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Define producer Price Index |
A measure of inflation that evaluates the change over time in the weighted average wholesale prices. |
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Define productivity |
The basic relationship between the production of goods and services (output ) and the resources needed to produce them (input) calculated via the following equation : output divided by input equals productivity. |