How Are the Fundamental Economic Decisions Determined in Canada

question 180

Multiple Choice

How are the fundamental economic decisions determined in Canada?

• A)Individuals,firms,and the government interact in a market to make these economic decisions.
• B)These decisions are made by the country's elders who have had much experience in answering these questions.
• C)The government decides because Canada is a centrally planned economy.
• D)The United Nations decides because Canada is a developing economy.

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Definitions:

Substitution Effect

A response to price changes in which consumers replace more expensive items with less costly alternatives.

Income Effect

The change in an individual's consumption patterns resulting from a change in their real income.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to replace more expensive items with cheaper alternatives.