2.  Economics is a study of how people and companies use limited resources to satisfy unlimited wants  Canada has a mixed economy under which both the private sector and the state direct the economy  Four factors of product aid economic growth: 1.Land 2.Labor 3.Capital 4.Entrepreneurship

3.  Production within a country is measured by Gross Domestic Product (GDP)  Production by Canadian individuals, Canadian residents and Canadian corporations both nationally and internationally is measured by Gross National Product (GNP)  Consumer Price Index (CPI) is an indicator of inflationary pressure and purchasing power ◦ It tracks more than 600 items ◦ It looks at prices of items such as food, beverages, transportation, apparel, housing and much more

4.  Market equilibrium occurs when quantity supplied meets quantity demanded

5.  Market bubbles happen if there is a sudden change in the market (increase/decrease)  Business cycle is a series of economic events such as prosperity, recession and recovery ◦ Real Estate cycle takes longer to go through than business cycle