CHAPTER 1: UNDERSTANDING THE CANADIAN ECONOMY
An organized effort, in which the main goal is profit by providing g/s (things that
customers are willing to pay).
Soccer Team, i.e. hire leagues, schedule team, UT, choir. They all provide services but
they are not businesses, even though we pay for those services.
Difference: Main motive is profit, unlike churches and schools.
- rewards the owner for investing time + $
Expenses: the money a business spends producing its goods and services and generally
running the business
Revenues: the money a business earns selling its products and services
- Earn profit Æ what consumers want or need, identify unmet consumer needs or better
ways to satisfy them Æ success [someone who can sport a promising opportunity and
develop a good plan for capitalizing on it can succeed]
Hoping to get some extra left after providing, advertising g/s. Diff. b/w rev. or sales and
costs or expenses. Fundamental reason of existence. Enhances production, consumption
and income, therefore also the standard of living.
Economics: study of: how best to produce things and how best to distribute wealth
Factors of Production:
Natural Resources: items used in the production of goods and services in their natural
state, including land, water, mineral deposits, and trees. Materials to be part of or for the
production of g/s
Labour: aka Human resources, mental and physical capabilities
Capital: Financial resources needed to operate an enterprise, ie personal investment,
investors, revenue, money, or the machines and technologies that money can buy
Entrepreneurs: The people who assemble and organize the other factors of production,
the individuals who make it all happen but risk failure. Those that have a vision and are
willing to take risks
Information resources: info such as market forecasts, economic data and specialized
knowledge of employees that is useful to a business and that helps it achieve its goals
Economic Systems (country): DOORFDWHVDQDWLRQ¶VUHVRXUFHVDPRQJLWVFLWL]HQV
What should we make?
How best to make it?
How best to share it?