Chapter Term Definition
1 business An organization that seeks to earn profits by providing goods
1 Canada Water Act Controls water quality in fresh and marine waters of Canada.
1 Canadian Radio-television
A federal regulatory agency that issues and renews broadcast
1 Canadian Transport
A federal regulatory agency that makes decisions about route
and rate applications for commercial air and railway
1 Canadian Wheat Board A federal regulatory agency that regulates the prices of wheat.
1 capital The funds needed to operate an enterprise.
1 capitalism An economic system in which markets decide what, when, and
for whom to produce.
1 command economy An economic system in which government controls all or most
factors of production and makes all or most production
1 communism A type of command economy in which the government owns
and operates all industries.
1 competition The vying among businesses in a particular market or industry
to best satisfy consumer demands and earn profits.
1 demand The willingness and ability of buyers to purchase a product or
1 demand and supply
Assessment of the relationships between different levels of
demand and supply at different price levels.
1 demand curve Graph showing how many units of a product will be demanded
(bought) at different prices.
1 deregulation A reduction in the number of laws affecting business activity.
1 economic system The way in which a nation allocates its resources among its
1 entrepreneur An individual who organizes and manages labour, capital, and
natural resources to produce goods and services to earn a
profit, but who also runs the risk of failure.
Establishes regulations for airborne substances that are a
danger to human health or to the environment.
1 factors of production The resources used to produce goods and services: labour,
capital, entrepreneurs, and natural resources.
1 factory system A process in which all the machinery, materials, and workers
required to produce a good in large quantities are brought
together in one place.
1 finance era The period during the 1980s when there were many mergers
and much buying and selling of business enterprises.
1 Fisheries Act Regulates the discharge of harmful substances into water.
1 Food and Drug Act Prohibits the sale of food unfit for human consumption and
regulates food advertising.
1 Hazardous Products Act Regulates banned products and products that can be sold but
must be labelled hazardous.
1 Industrial Revolution A major change in goods production that began in England in
the mid-eighteenth century and was characterized by a shift to
the factory system, mass production, and specialization of
1 information resources Information such as market forecasts, economic data, and
specialized knowledge of employees that is useful to a
business and that helps it achieve its goals.
1 input market Firms buy resources that they need in the production of goods
1 labour The mental and physical training and talents of people;
sometimes called human resources.
1 law of demand The principle that buyers will purchase (demand) more of a
product as price drops.
1 law of supply The principle that producers will offer (supply) more of a
product as price rises.
1 lobbyist A person hired by a company or an industry to represent its
interests with government officials.
1 market A mechanism for exchange between the buyers and sellers of a
particular good or service.
1 market economy An economic system in which individuals control all or most
factors of production and make all or most production
1 market price (or
Profit-maximizing price at which the quantity of goods
demanded and the quantity of goods supplied are equal.
1 marketing era The period during the 1950s and 1960s when businesses began
to identify and meet consumer wants to make a profit.
1 mass production The manufacture of products of uniform quality in large
1 mixed market economy An economic system with elements of both a command
economy and a market economy; in practice, typical of most
1 monopolistic competition A market or industry characterized by a large number of firms
supplying products that are similar but distinctive enough from
one another to give firms some ability to influence price.
1 monopoly A market or industry with only one producer, who can set the
price of its product and/or resources.
1 natural monopoly A market or industry in which having only one producer is
most efficient because it can meet all of consumers’ demand
for the product.
1 natural resources Items used in the production of goods and services in their
natural state, including land, water, mineral deposits, and trees.
1 oligopoly A market or industry characterized by a small number of very
large firms that have the power to influence the price of their
product and/or resources.
1 output market Firms supply goods and services in response to demand on the
part of consumers.
1 perfect competition A market or industry characterized by a very large number of
small firms producing an identical product so that none of the
firms has any ability to influence price.
1 private enterprise An economic system characterized by private property rights,
freedom of choice, profits, and competition.
1 privatization The transfer of activities from the government to the public
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1 production era The period during the early twentieth century when businesses
focused almost exclusively on improving productivity and
1 profit What remains (if anything) after a business’s expenses are
subtracted from its sales revenues.
1 progressive revenue taxes Taxes levied at a higher rate on higher-income taxpayers and
at a lower rate on lower-income taxpayers.
1 regressive revenue taxes Taxes that cause poorer people to pay a higher percentage of
income than richer people pay.
1 restrictive taxes Taxes levied to control certain activities that legislators believe
should be controlled.
1 revenue taxes Taxes whose main purpose is to fund government services and
1 sales era The period during the 1930s and 1940s when businesses
focussed on sales forces, advertising, and keeping products
1 shortage Situation in which quantity demanded exceeds quantity
1 socialism A kind of command economy in which the government owns
and operates the main industries, while individuals own and
operate less crucial industries.
1 specialization The breaking down of complex operations into simple tasks
that are easily learned and performed.
1 supply The willingness and ability of producers to offer a good or
service for sale.
1 supply curve Graph showing how many units of a product will be supplied
(offered for sale) at different prices.
1 surplus Situation in which quantity supplied exceeds quantity
1 Textile Labelling Act Regulates the labelling, sale, importation, and advertising of
consumer textile articles.
1 Tobacco Act Prohibits cigarette advertising on billboards and in retail
stores, and assigns financial penalties to violators.
1 trade association An organization dedicated to promoting the interests and
assisting the members of a particular industry.
1 Weights and Measures Act Sets standards of accuracy for weighing and measuring
2 acquisition One firm buys another firm and absorbs it into its operations.
2 aggregate output Total quantity of goods and services produced by an economic
system during a given period.
2 applied R&D Focussing specifically on how a technological innovation can
be put to use in the making of a product or service that can be
sold in the marketplace.
2 balance of trade The total of a country’s exports (sales to other countries)
minus its imports (purchases from other countries).
2 basic (or pure) R&D Improving knowledge in an area without a primary focus on
whether any discoveries that might occur are immediately
2 budget deficit The result of the government spending more in one year than it
takes in during that year.
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Canadian wheat board capital capitalism command economy communism competition demand demand and supply schedule demand curve deregulation economic system entrepreneur. Contaminants act factors of production factory system finance era. An organization that seeks to earn profits by providing goods and services. Controls water quality in fresh and marine waters of canada. A federal regulatory agency that issues and renews broadcast licences. A federal regulatory agency that makes decisions about route and rate applications for commercial air and railway companies. A federal regulatory agency that regulates the prices of wheat. An economic system in which markets decide what, when, and for whom to produce. An economic system in which government controls all or most factors of production and makes all or most production decisions. A type of command economy in which the government owns and operates all industries. The vying among businesses in a particular market or industry to best satisfy consumer demands and earn profits.