Chapter 6:

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

 Less efficient use of time

 The doctrine of Ricardian

equivalence

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 Economic Stability
Inflation
Deflation
Interest rates

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Employment

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 Types of Unemployment
Frictional
Cyclical
Structural
Seasonal

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 Think Pair Share:
What types of unemployment do you
think present the most challenges for
the economy and why?

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 Concept Application:
Saskatoon: Canada’s Fastest Growing Economy
Questions:

1. What economic elements are contributing to

Saskatoon’s growing economy?

2. What non-economic or other related factors are

contributing to Saskatoon’s growing economy?

3. What do you think are the most important

factors for Saskatoon to sustain long-term
economic growth?
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Questions and Answers?

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