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CIE3M EXAM
final exam - essentially everything covered in the course
| Term | Definition |
|---|---|
| Fallacy | a hypothesis that has been proven wrong but is still accepted by many people because at first glance it might look right. |
| Fallacy of Single Causation | based on the faulty premise that a singular factor or person caused a particular event to occur |
| Fallacy of Composition | based on the faulty premise that what is good for an individual is good for the whole society |
| The Post Hoc Fallacy | based on the mistaken assumption that what comes before automatically causes what follows |
| Communism | strong central government with complete authority; community ownership of all means of production and wealth |
| Socialism | democratically elected; public ownership of the means of production; fair distribution of available goods |
| Capitalism | democratically elected; free market, demand balances supply |
| Fascism | authoritative, controlling government; free market |
| Pure Competition | large number of firms all producing the same product; free market entry and exit; best price and informed buyers; high startup costs and expensive technology |
| Monopolistic Competition | similar products, not identical; many firms with slight price control; low startup costs; non-price competition |
| Oligopoly | few large, profitable firms; greater market power |
| Monopoly | single seller, competitive barriers; majority are illegal |
| What does the HDI compare and measure? | health; education; income; |
| Predatory Pricing | when a business drops the price of their product to get rid of competitors |
| Scarcity | constantly being in short supply, unlimited needs but limited resources |
| Capital | liquid = money, non-liquid = assets |
| Economics | the social science of scarcity, choice, and allocating resources |
| Welfare State | provides basic economic security for all citizens, progressive tax system |
| Hidden Economy | no government notice, beyond tax collectors and tax regulators |
| GDP Formula | GDP = consumption + investment + government spending + net exports |
| Microeconomics | discipline of economics that focuses on the individual's interactions, firms |
| Tariffs | tax on foreign imported goods |
| Export Subsidy | government provides subsidies to a business (gov pays) to make production, and therefore prices, cheaper |
| Product Standards | mandates on packaging and product safety |
| Embargoes | banning trade from a particular product or area |
| Quotas | limitations on the quantity of a particular product that is imported |
| FDI Restrictions | limitations on specific products entering the country |
| Fixed Exchange Rates | linking one currency to another country's (one or multiple), or a metal |
| Flexible Exchange Rates | fluctuates freely without government interference |
| Managed Float Exchange Rates | combines elements of both fixed and flexible exchange rates |
| Income Tax | provincial and federal tax, based on amount earned |
| Sales Tax | provincial and federal tax on the items you purchase |
| Excise Tax | non-essential, luxury, unhealthy goods |
| Customs Duties | taxes on items brought into the country |
| Property Taxes | tax on property, for municipal government |
| Progressive Tax | the higher the income, the more the tax |
| Regressive Tax | more taxes for the ones who have lower income |
| Proportional Tax | both the rich and the poor pay the same percentage of tax |
| Cyclical Unemployment | caused by the natural business cycle |
| Frictional Unemployment | caused by people looking for a new job and taking a break, or people just finishing school |
| Structural Unemployment | demand exceeds supply; this could be due to the average skillset not meeting the needs or due to geography |
| Seasonal Unemployment | this happens whenever people get laid off during specific seasons |
| Reasons for Income Inequity | different skillsets; willingness to work; risk + responsibility awarded; training + education; luck + health; family background; market power; discrimination; regional economic disparities |
| Factors of Production (HINT: CRIMLLN) | capital raw materials information management labour land natural resources |
| Absolute Advantage | the ability of a country to produce more of a good or service using the same amount of resources |
| Comparative Advantage | the ability of a business/economy to produce a good or service at a lower opportunity cost than another party |
| Quantity Demanded | the amount of a good or service that buyers are willing and able to purchase at a certain price |
| Demand | the relationship between price and quantity demanded |
| Law of Demand | the higher the price, the smaller is the quantity demanded; the lower the price, the greater is the quantity demanded holding other things equal |
| Quantity Supplied | the amount of a good or service that sellers are willing and able to sell at a certain price |
| Supply | the relationship between price and quantity supplied |
| Law of Supply | the higher the price, the grater is the quantity supplied; the lower the price, the smaller is the quantity supplied holding other things equal |
| Game Theory | the study of strategic decision making |
Created by:
marie-eve.
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