Key Economic Concepts - Class 1

Final allocation of benefits across individuals judged based on justice and moral acceptability. Examples include equal distribution of wealth or maximizing overall happiness.

A principle stating that everyone should have the same amount of wealth. This principle values equality above all else.

A principle focused on maximizing the total happiness of the population. This principle prioritizes overall well-being above individual differences in wealth.

The rules and processes used to make decisions and allocate resources are judged based on fairness and moral acceptability, irrespective of the final outcome.

A situation where achieving fairness might come at the cost of economic efficiency. For example, rent control might benefit tenants but reduce the supply of housing, leading to inefficiency.

Treating individuals fairly in terms of the procedures used or the outcomes they receive. This emphasizes fairness at the individual level.

Treating large groups of people fairly based on characteristics like gender, race, or ethnicity. This considers the broader impact of policies on different groups.

The study of ethical judgments about the morality of actions and rules of behavior. It delves into questions of right and wrong.

The idea that the rightness or wrongness of an action is determined solely by its consequences.

A moral philosophy that judges the rightness or wrongness of an action based on whether it follows certain rules, regardless of the consequences.

Every individual act is assessed based on whether it maximizes overall happiness or well-being.

Individuals follow rules believing that these rules will lead to the greatest overall happiness.

A hypothetical state where individuals are unaware of their own position in society, making decisions without bias.

A principle in John Rawls' Theory of Justice, stating that everyone should have equal access to basic rights and liberties.

A principle in John Rawls' Theory of Justice, advocating for an opportunity structure where individuals have a fair chance to succeed, regardless of their background.

A principle in John Rawls' Theory of Justice stating that inequalities are permissible only if they benefit the least advantaged members of society.

The belief that the sole responsibility of a business is to increase profits for its shareholders, within the bounds of law and ethical conduct.

The cost of producing one more unit of a good in terms of the other goods that could have been produced. It represents the opportunity cost of producing that good.

A situation where a country can produce a good at a lower opportunity cost than other countries. This suggests that the country has a comparative advantage in producing that good.

A situation where a country is completely self-sufficient and does not trade with other countries. It produces everything it consumes domestically.

A situation where the average cost of production falls as the quantity produced increases. This occurs due to factors like specialization, economies of scale, or technological advancements.

The benefits that consumers gain from lower prices and greater product variety due to increased competition.

Policies that restrict imports into a country, such as tariffs, quotas, or government procurement preferences. These are designed to protect domestic producers, but often have negative consequences for consumers.

A tax imposed on imported goods. It acts as a price barrier and is a common tool used to raise government revenue and protect domestic producers.

A limit on the quantity of a specific good that can be imported into a country. By limiting supply, quotas artificially raise prices and benefit domestic producers.

The effect on one party's well-being that is not reflected in the market price. For example, pollution from a factory impacts the health of nearby residents, but the factory doesn't pay for this cost.

A situation where activities with negative externalities are carried out at a higher level than is socially optimal. This means the cost to society is greater than the benefit.

Actions taken to reduce pollution. Examples include carbon taxes or subsidies for renewable energy.

The idea that, with clear property rights and low transaction costs, parties can negotiate to achieve efficiency even with initial unequal distribution of rights. This is because parties can bargain to reach mutually beneficial outcomes.

A legal framework that recognizes and affirms Indigenous rights and title. It aims to ensure Indigenous peoples have the right to self-determination, including the right to prior and informed consent on decisions affecting their lands and resources.

The legal obligation of the Crown (government) to consult with Indigenous Nations before making decisions that could affect their interests and to accommodate their rights and title.

The requirement that Indigenous peoples have the right to be fully informed and consent freely to any project or development that could impact their lands or resources.

The process of updating laws and policies to ensure they are consistent with Indigenous rights and the principles of reconciliation.

The Royal Proclamation of 1763 was a landmark document declaring that only the Crown could purchase lands from Indigenous Peoples. This established the concept of Aboriginal title, recognizing Indigenous ownership and control of land.

Section 35 of the Constitution Act, 1982 protects Aboriginal rights, including hunting, fishing, gathering, and Aboriginal title. Aboriginal title is a right of ownership and governance over lands traditionally used and controlled by First Nations.

The Honour of the Crown obligates the Crown to uphold its treaty obligations with Indigenous Peoples. Where no treaty exists, the Crown must consult and accommodate Indigenous Nations. The Calder decision in 1973 confirmed the existence of Aboriginal rights under Canadian law.

The duty to consult and accommodate requires governments to consult with Indigenous Peoples before making decisions that may affect them, and to accommodate their concerns. This duty stems from the Honour of the Crown and is based on the principle of respecting Indigenous rights.

The United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) promotes Indigenous self-determination, including the right to free, prior, and informed consent (FPIC) regarding any project affecting their lands. This declaration provides legal frameworks for upholding Indigenous rights worldwide.

The Declaration on the Rights of Indigenous Peoples Act (DRIPA) aims to implement UNDRIP in British Columbia. It affirms the application of the Declaration to BC laws, seeks to implement its principles, and supports relationships with Indigenous governing bodies. DRIPA requires the Province to develop an action plan in consultation with Indigenous Nations.

The Haida case involving Tree Farm License 39 highlighted the importance of the duty to consult. The case involved a forestry firm harvesting trees on Haida territory without proper consultation with the Haida Nation. The court ruled in favor of the Haida Nation, emphasizing the Crown's obligation to consult and accommodate Indigenous rights.

Measures taken by governments to restrict or regulate imports, often used to protect domestic industries or achieve specific policy objectives.

Regulations that seem to address consumer health and safety but may actually be used to discriminate against or restrict imports, often as a form of protectionism.

A situation where a country's market structure is characterized by numerous small buyers and sellers, each with a negligible impact on market prices. This implies perfect price flexibility and the absence of any barriers to entry or exit.

The goal of competition policy, aiming to ensure a level playing field for businesses, prevent anti-competitive behavior, and provide consumers with lower prices and diverse choices.

Form of anti-competitive behavior where firms collude to fix prices, rig bids, or divide markets. This reduces competition and harms consumers.

The department responsible for enforcing competition laws in Canada, investigating potential violations and pursuing legal action against businesses engaging in anti-competitive practices.