IMPORTANT TERMS IN CHAPTER 1. SocialismSee Question #5 (Very Important) 2. Capitalism See Question #5 (Very Important) 3. Capital 4. Profit 5. Entrepreneur 6. Standard of Living 7. Poverty 8. Cycle 9. Personal Capital 10. Down Payment 11. Mortgage 12. Cause and Effect 13. Trigger 14. Quality of Life
Capital Is the money (and other things) that have to be invested or “put into” a business venture to start it up and keep it operating. Profit Is the money the business owner makes after being repaid for the investment and paying outer expenses. Entrepreneur Is a person who gets an idea to start up a business. Standard of Living Is a measure of a family’s buying power. Poverty When people don’t have enough money to meet their expenses and basic needs.
Cycle When the same events keep happening over again with the same results. Personal Capital Includes anything you have that can help improve your economic situation. Includes savings in the band, property, skills, or a willingness to work hard. Down Payment The amount of money that a person can contribute to the purchasing of a house. Mortgage The amount of money that a person borrows from a bank to go towards the purchasing of a house.
Cause and Effect The cause is what makes a change happen and the effect is the change that results. Trigger Is the first event that causes a series of events to occur. Quality of Life Includes all the things we need and want that money can’t buy.
Worksheet Question #2 What is Economic Security? Economic Security means having enough money to meet your needs- and a little extra for the special things you want.
Worksheet #3 What are needs and wants and why are they important to people? Are needs and wants only things that money can buy explain. In our society most needs and wants can be met by money (i.e. new cloths, house, car, etc.). The things that are essential for life are our needs. Needs include food, shelter, clothes, etc. The things that are discretionary, that we can live without are our wants. Wants include things such as toys, games, musical instruments, cars, cellpones, etc. However, there are needs and wants in our society that money cannot buy (i.e. people need to feel safe, cared for, loved and have a sense of belongingness).
Worksheet Question #4 Be able to draw and explain how money moves through the Canadian economy. See diagram p.44 textbook
Worksheet Question #5 CapitalismSocialism A. Individual Freedom is highly valuedA. What’s best for the group is more important than what’s best for the individual B. Production of goods and services is in the hand of individuals B. Production of goods and services is in the hand of the government C.Whether a person is able to meet their needs and wants is determined by whether they have the money to pay for them. C. Every person should receive enough to meet his/her needs D.Competition is important to help create wealth and improve society
Worksheet Question #6 Know the difference between capital and profit. Be able to list and explain three types of businesses in our economy. The term Capitalism comes from the word capital. Capital is the money that goes into starting a business and maintaining it Profit is the money that business owners make after paying their expenses (investment, salaries, supplies, etc) There are many different kinds of business in our economy: 1.Personal/Private Ownership: Home-repairs and gardening 2.Family Business: Can be a group of family members working together to operate a business or a business passed down from generations (O’Brien’s Music Store; F.J Wadden and Sons). 3.Larger Corporate Business: Can be owned by big companies based in other parts of Canada or parts of the world (i.e. Nissan; McDonalds Restaurants).
Worksheet Question #7 Chris Griffith’s Garrison Guitars (St. John’s, NL) Chris is an entrepreneur from St. John’s who got an idea to start up his own guitar business (guitar repairs and building). He did great research, study and put in a lot of hard work into his ideas. His big breakthrough was an idea to perfect a new type of acoustic guitar made out of fiberglass rather than pieces of wood. This guitar was quickly in demand in countries all over the world. By 2002, his company, Garrison Guitars, was employing 57 people and business was booming.
Worksheet Question #8 The Cause and Effect Chain Explains why certain things took place The cause is what made a change happen. The effect is the change that resulted. Cause -------------- Effect Mill Closes ------------- Workers become Unemployed However, real life is more complicated than this resulting in a chain of events caused by a trigger. For example we can go further to understand the effects of the workers becoming unemployed.