COMM 200 Chapter Notes - Chapter 2: Gross Domestic Product, Government Spending, Real Wages

• School: Queen's University
• Department: Commerce
• Course: COMM 200
• Professor: Gary J Bissonette

Document Summary

Specific products driving canada"s economy: crude oil and other petroleum gases, wheat, canola, other agricultural based products, metals, minerals. Manufacturing drivers of canadian economy: telecommunications, aerospace, energy support products (e. g. gas turbines, forestry-related products, automotive sector. Sufficient levels of investment: our possession of a strong natural resource base results in our having a comparative advantage in commodities and energy market sectors. A balanced relationship needs to be established between three fundamental market composition. Underlying economic model principles for economic development: 1) the law of supply and demand, 2) allowance for private ownership, entrepreneurship and wealth creation, 3) extent of government involvement in influencing economic activity and direction. Inelastic: when movement in price doesn"t result in significant changes in demand. Elastic: situation where the quantity demanded does change significantly due to a: supply: reflects how much of a product/service producers are willing to provide the change in price market at various price points.