Economics

• Economics


  Study of how to satisfy human wants with the scarcity of resources
• Scarcity


  When people's wants outweigh the land, labor & capital needed to create the product
• Foundations of Scarcity


  • What is needed/wanted?
  • How will it be produced?
  • Who will get it?
• Why Scarcity Gets Created


  Land, labour and capital
• Land


  Materials found in the natural environment needed to produce these goods/services
• Labour


  Physical/mental effects needed to produce the goods/services
• Capital


  Money needed for the overall production to produce the goods/services
• Economic Systems - Planned economy, mixed economy, and market economy.
• Consumers


  A person who buys products and services (a shopper)
• Producers


  A person or business that provides a product or service
• Goods


  Things that are produced/manufactured
• Services


  Provided by individuals, but you may not always take a product home with you
• Supply


  How much of a product or service there is available to consumers for purchase.
• Demand


  How much consumers want/need, how much they want to pay, and how much of the product can be sold at that price.
• Equilibrium


  Where supply and demand are equal
• Supply and demand


  Affect prices of products, how available they are, and the jobs connected to creating those products
• Market Economies


  • Private ownership of resources
  • Emphasis on individualism
  • Prices set by supply and demand
• Competition is the rivalry among producers to sell the products to consumers
• Monopoly


  • Rare, must have some government support
  • Does not have to be competitive in price
  • Prices often regulated by government
• Government intervention in Market Economy

  • Makes regulations to protect the common good
  • Collects taxes to fund programs and services essential to the common good
  • Imposes laws to ensure competition between businesses
• Canada's government upholds the founding principle of "peace, order and good government"
• Canada's Economy


  • Mixture of public (government) and private (individual) ownership
  • Government and consumers influence economic decision making
  • Government controls vital industries and services
  • Government funds initiatives to promote Canadian culture
• Government Interventions Compared

  • Health Care
  • Social Programs
  • Environmental Protection
  • Competition Laws
  • Consumer Safety Initiatives
• Labour Union


  • An organization of wage earners formed for the purpose of serving the members' interests with respect to wages and working conditions
  • Unions provide ways for workers to act as a group
  • Collective bargaining is the key right established by unions for the workers
• Because of unions, Canada has labour laws such as the Canada Labour Code
• Canada's labour laws establish that workers have a right to form unions
• Labour Unions Impact on Mixed Economies

  • Unions can influence change through cooperation with the government
  • Unions lobby governments for favorable legislation
  • Governments can create legislation that is not favorable to labour unions
• Labour Unions Impact on Market Economies


  • In a pure market economy, the government does not set employment standards for workers
  • Employees and consumers would have to hold employers accountable
• How Unions Impact Employers

  1. Organize workers into groups

  2. Pressure employers about wages, working hours and workplace safety

  3. Strikes are a form of pressure

  4. General strikes can occur when unions support each other in solidarity
• Role of consumer in Market & Mixed Economy


  Consumers are essential for economic activity. Consumers: Drive competition, shape demand, & influence product decision. Consumers drive the economic engine.
• How does individual consumer behavior impact quality of life?

  • Consumer Actions: The most basic consumer action is the decision to purchase or to not purchase goods or services
  • Identity: Identity is the way we are perceived by ourselves and those around us. Our identity is defined by our values, belief systems, and interests. It is influenced by factors such as history and geography.
• How does individual consumer behavior impact quality of life? Opportunities

  • Material Comfort: Consumerism allows individuals to access a wide range of products, enhancing material comfort
  • Innovation & Convenience: The demand for new products drives innovation. Consumerism fosters technological advancements, making life more convenient
  • Job Creation: Consumer spending fuels economic growth, leading to job creation
• How does individual consumer behavior impact quality of life? Limitations

  • Financial Stress: Excessive consumerism leads to financial strain
  • Environmental Impact: Consumerism often involves resource-intensive production, leading to environmental degradation. Over consumption contributes to pollution and climate changes
  • Emotional Fulfillment: Research shows material possessions alone do not lead to fulfillment
  • Debt & Unsustainable Lifestyles: Consumerism encouraged borrowing, which can lead to debt
  • Social Comparison: Consumerism fosters a culture of comparison
• Consumerism


  The culture of excessive consumption and the pursuit of material possessions
• Marketing fuels consumerism


  By creating demand for products & services. Advertisements, promotions, and endorsements encourage people to buy more
• Increased consumer spending


  Drives economic growth. Businesses thrive when consumers purchase goods and services
• Unchecked consumerism


  Can lead to overconsumption, resources depletion and environmental degradation
• Consumer actions reflect both individual uniqueness and collective identity
• How is consumerism used as a power of a collective?

  1. Consumer Behavior & Marketing Influence

  2. Positive and Negative Aspects

  3. Balancing Marketing & Responsible Consumption
• To what extent do perspectives regarding consumerism, economic growth & quality of life differ regionally in North America?

  1. Consumerism

  2. Economic Growth

  3. Quality of Life