(See related pages)
Below are the key terms featured in this chapter. The textbook's full glossary is also available for online searching.
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| balance-of-payments accounts | a summary of all transactions between Canadians and foreigners that involve exchanging Canadian dollars for other currencies (See page(s) 18) |
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| capital resources | the processed materials, equipment, and buildings used in production; also known as capital (See page(s) 3) |
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| ceteris paribus | the assumption that all other things remain the same (See page(s) 5) |
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| command economy | an economic system based on public ownership and central planning (See page(s) 15) |
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| consumer sovereignty | the effect of consumer needs and wants on production decisions (See page(s) 14) |
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| dependent variable | the variable in a causal relationship that is affected by another variable (See page(s) 5) |
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| direct relationship | a relationship in which a change in the independent variable causes a change in the same direction of the dependent variable (See page(s) 5) |
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| economic efficiency | employing scarce resources in such a way as to derive the highest benefit (See page(s) 17) |
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| economic growth | an increase in an economy's total output of goods and services (See page(s) 10) |
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| economic models | generalizations about or simplifications of economic reality; also known as laws, principles, or theories (See page(s) 4) |
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| economic problem | the problem of having unlimited wants, but limited resources with which to satisfy them (See page(s) 3) |
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| economic resources | basic items that are used in all types of production, including natural, capital, and human resources (See page(s) 3) |
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| economic system | the organization of an economy, which represents a country's distinct set of social customs, political institutions, and economic practices (See page(s) 12) |
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| economics | the study of how to distribute scarce resources among alternative ends (See page(s) 4) |
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| entrepreneurship | initiative, risk-taking, and innovation necessary for production (See page(s) 4) |
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| independent variable | the variable in a causal relationship that causes change in another variable (See page(s) 5) |
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| inflation | a rise in the general level of prices (See page(s) 17) |
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| inverse relationship | a relationship in which a change in the independent variable causes a change in the opposite direction of the dependent variable (See page(s) 5) |
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| labour | human effort employed directly in production (See page(s) 4) |
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| law of increasing opportunity costs | the concept that as more of one item is produced by an economy, the opportunity cost of additional units of that product rises (See page(s) 9) |
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| macroeconomics | the branch of economics that takes a wide-ranging view of the economy, studying the behaviour of economic sectors (See page(s) 4) |
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| market | a set of arrangements between buyers and sellers of a certain item (See page(s) 13) |
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| market economy | an economic system based on private ownership and the use of markets in economic decision-making (See page(s) 13) |
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| microeconomics | the branch of economics that focuses on the behaviour of individual participants in various markets (See page(s) 4) |
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| modern mixed economy | an economic system that combines aspects of a market economy and a command economy; production decisions are made both in private markets and by government (See page(s) 16) |
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| natural resources | the resources from nature that are used in production, including land, raw materials, and natural processes (See page(s) 3) |
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| normative economics | the study of how the economy ought to operate (See page(s) 6) |
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| opportunity cost | the utility that could have been gained by choosing an action's best alternative (See page(s) 7) |
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| positive economics | the study of economic facts and why the economy operates as it does (See page(s) 5) |
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| product markets | markets in which consumer, or final, products are traded (See page(s) 13) |
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| production possibilities curve | a graph that illustrates the possible output combinations for an economy (See page(s) 8) |
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| production possibilities schedule | a table that shows the possible output combinations for an economy (See page(s) 8) |
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| resource markets | markets in which economic resources are traded (See page(s) 13) |
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| self-interest motive | the assumption that people act to maximize their own welfare (See page(s) 6) |
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| traditional economy | an economic system in which economic decisions are made on the basis of custom (See page(s) 12) |
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| traditional mixed economies | economic systems in which a traditional sector co-exists with modern sectors (See page(s) 17) |
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| unemployment rate | the percentage of a labour force that is involuntarily unemployed (See page(s) 18) |
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| utility | the satisfaction gained from any action (See page(s) 6) |
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| variables | factors that have measurable values (See page(s) 5) |