Economics + Consumerism + Social Programs

• Economics: The study of production, distribution, and consumption of goods and services

  Economic system:The way a society organizes production, distribution and consumption of goods and services
• Scarcity

  Limited resources
• Socialism

  (left wing) production, distribution, and exchange are owned/regulated by the community as a whole
• Capitalism


  (right wing) economics, trade, and industries are controlled by private owners for profit
• Monopoly


  The exclusive control of supplies/trade in a service
• Competition

  Contention to obtain goods that are limited
• Collectivism


  The practice of giving a group priority over individuals
• Individualism


  The principle of being independent/self reliant
• Crown corporation


  Government owned company
• Supply


  Make something needed or wanted available
• Demand

  Insistent request, made as if by right
• Consumer


  Person who purchases goods and services for personal use
• Laissez Faire

  Let do
• Consumerism

  Buying goods and services beyond necessities & how it affects quality of life
• Materialism


  Valuing stuff (too much stuff)
• Quality of Life

  The standard of health, comfort, and happiness experienced by an individual or group
• Gross Domestic Product (GDP)

  The total value of goods produced and services provided in a country during one year
• Economic systems:

  • Everyone has a different ideas on how to organize the economy (different economic systems)
  • They depend on values of government 
  • ☝️They may change depending on what political parties in power 
  • Different country different economic systems 
  • On continuum based on government involvement in economy 
• 3 Types of Economic Systems/spectrum:

  1. Planned(left)
  2. Mixed(middle)
  3. Market (right)

  • Planned market applies to the political parties on the left of the spectrum, mixed economy is usually represented by the parties in the middle of the spectrum, and market economy is shown in the parties on the right of the spectrum
• Planned Economy

  Also known as Command Economy, Communism, Socialism, Public ownership. Government makes economic decisions about making and distributing products
• Planned Economy

  • Russia
  • North Korea
  • Cuba
• Planned Economy

  • Production all owned and controlled by government
  • Economic questions are answered by government/state (central planning agency)
  • Resources publicly(government) owned
  • Individuals have less of a say in economics
  • More economic equality
  • No competition
• Market Economy

  Economic decisions & price of goods are guided by individuals (based on laissez - faire = let do)
• Market Economy

  • USA
  • New Zealand
  • Japan
• Market Economy

  • Resources privately owned (Make your own decision on how to use resources)
  • Consumers drive economic decision based off what they buy
  • Disparity in wealth
• Market Economy

  • Choice - consumers choose what they purchase
  • Competition - great for consumers price shifts and quality
  • Supply & demand - amount of product available based on what is wanted from everyone(can cause price to fluctuate)
• Government role in Market Economy

  Help to ensure fair advertising, protect consumers from unfair prices, make sure competition is ensured and tax when necessary
• Supply and demand

  Amount of product available based on what is wanted from everyone(can cause price to fluctuate)
• Mixed Economy: combines ideas from capitalism and socialism

  Ex.Canada, sweden, norway 

  • Allows for private land & government to help to achieve goals
  • Resources are controlled by government & individuals 
  • Everyone(including the government) has a say in economic decisions
  • Level of government involvement fluctuates based on government 

  Pros:

  • Private firms are more efficient than government 
  • Government can intervene to improve deficit 
  • Creates an absolute poverty(safety net system)

  Cons: 

  • Too much market force 
  • Resources not equal 
  • Successful businesses can lobby for tax breaks  & incentives 
• Government is very involved in planned economy

  Government has rules, but allows people to have private property in  mixed economic

  Government tries its best to stay out in market economy 

  Quality of life:provide jobs and cretes much more money and develops it more 

  Supply and demand:            

  • Amount of product is based on what consumers want to buy this can cause price to fluctuate
  • Raise if high demand low supply
  • Drop if high supply low demand
• Scarcity of goods:

  • When certain products are wanted more than others, but there is not enough of that product to fit the demand
• Competition importance in economic systems: 

  • Allows the product quality to increase 
  • Allows price to decrease 
• Publicly owned business: owned by government but the government doesn’t intervene much 

  Privately owned businesses: Owned by an individual

  Ex. private schools
• Three factors of productions:

  • Labour
  • Land
  •  capital 
• Three main economic indicators:

  1.  GDP(Gross Domestic Product): higher the GDP the more goods and services that country produces and the more prosperous it is
  2. Income: reflects a person's financial resources and their ability to access goods & resources that contribute to their well being 
  3. Employment: Reflect a person's ability to access stable and decent-paying work = important factor for economic security and well being 
• Social indicators(QOL):

  • Social connectedness
  • Crime rates
  • Access to education 
  • Cultural opportunities 
• Environmental indicators(QOL)

  • Air quality
  • Water quality
  • Waste management 
  • Biodiversity 
  • Land use 
• Health indicators(QOL):

  • Life expectancy
  • Infant mortality rate
  • Disease prevalence 
  • Mental health 
  • Access and quality of healthcare 
• Cultural Indicators(QOL):

  • Arts and culture
  • Diversity and inclusion
  • Social norms and values
  • Leisure and recreation
  • Spirituality and religion
• Political indicators(QOL):

  • Political stability 
  • Democratic institutions
  • Corruption
  • Human rights
  • Public services
  • International relations