Economic Forces Oh Canada, What is Your Economy Like?
Reading: Karakowsky & Guriel, Chapter 6
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Learning Objectives 1. Define the elements of an economic environment. 2. Describe four types of economic systems. 3. Compare four types of competition. 4. Discuss how economic elements can affect business. 5. Explain the different types of unemployment.
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What is an economic environment? 1. Individuals 2. Businesses 3. Government
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2. Businesses Five Factors of Production
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3. Government Creates laws Promotes tax credits Ensures qualified labour
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Analyzing the economy Microeconomics Macroeconomics
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What is an economic system?
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Types of economic systems Market economy Communism Socialism Mixed Economy
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Types of Competition Perfect (or pure) Monopoly Oligopoly Monopolistic
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Types of Competition
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Think Pair Share: What type of competition do you think ‘cell phones’ compete in? Explain your answer by referring to the chart on “Types of Competition”.
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Goals of Canada’s Economic System Economic growth Economic stability Employment
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The Business Cycle Expansion Peak Contraction Recovery
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The Business Cycle
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Measuring Economic Growth Gross domestic product (GDP) Gross national product (GNP) Real GDP Nominal GDP
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Productivity
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The Balance of Trade Trade surplus Trade deficit
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Exchange rates
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The National Debt National debt Budget deficit
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The National Debt Why is debt bad for a country? Lowers country’s credit rating Austerity programs