(See related pages)
Below are the key terms featured in this chapter. Clicking on a term will reveal its definition. The textbook's full glossary is also available for online searching.
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| Business cycles | The periodic rises and falls that occur in all economies over time (See page(s) 52) |
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| Capitalism | An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit (See page(s) 36) |
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| Communism | An economic and political system in which the state (the government) makes all economic decisions and owns almost all the major factors of production (See page(s) 44) |
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| Consumer price index (CPI) | Monthly statistics that measure the pace of inflation or deflation (See page(s) 52) |
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| Deflation | A situation in which prices are declining (See page(s) 52) |
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| Demand | The quantity of products that people are willing to buy at different prices at a specific time (See page(s) 38) |
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| Depression | A severe recession (See page(s) 53) |
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| Disinflation | A situation in which price increases are slowing (the inflation rate is declining (See page(s) 52) |
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| Economics | The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals. (See page(s) 34) |
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| Gross domestic product (GDP) | The total value of goods and services produced in a country in a given year (See page(s) 48) |
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| Industrial product price index (IPPI) | Reflects the prices that producers in Canada receive as goods leave the plant gates to be sold (See page(s) 52) |
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| Inflation | A general rise in the prices of goods and services over time (See page(s) 52) |
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| Invisible hand | A phrase coined by Adam Smith to describe the process that turns selfdirected gain into social and economic benefits for all (See page(s) 35) |
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| Macroeconomics | The part of economic study that looks at the operation of a nation’s economy as a whole (See page(s) 35) |
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| Market price | The price determined by supply and demand (See page(s) 39) |
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| Microeconomics | The part of economic study that looks at the behaviour of people and organizations in particular markets (See page(s) 35) |
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| Mixed economies | Economic systems in which some allocation of resources is made by the market and some by the government (See page(s) 45) |
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| Monopolistic competition | The market situation in which a large number of sellers produce products that are very similar but that are perceived by buyers as different (See page(s) 40) |
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| Monopoly | A market in which there is only one seller for a product or service (See page(s) 40) |
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| Oligopoly | A form of competition in which just a few sellers dominate the market (See page(s) 40) |
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| Perfect competition | The market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product (See page(s) 40) |
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| Productivity | The total output of goods and services in a given period divided by the total hours of labour required to provide them (See page(s) 49) |
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| Quality of life | The general well being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time, and everything else that leads to satisfaction and joy (See page(s) 49) |
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| Raw materials price index (RMPI) | Reflects the prices paid by Canadian manufacturers for key raw materials (See page(s) 52) |
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| Recession | Two or more consecutive quarters of decline in the GDP (See page(s) 53) |
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| Socialism | An economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be evenly distributed among the people (See page(s) 42) |
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| Standard of living | The amount of goods and services people can buy with the money they have (See page(s) 49) |
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| Supply | The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time (See page(s) 38) |