Grade 7 – Social Studies
CHAPTER 3
ECONOMIC SECURITY
IMPORTANT TERMS IN CHAPTER
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Socialism See Question #5 (Very Important)
Capitalism See Question #5 (Very Important)
Capital
Profit
Entrepreneur
Standard of Living
Poverty
Cycle
Personal Capital
Down Payment
Mortgage
Cause and Effect
Trigger
Quality of Life
 Capital
 Is the money (and other things) that have to be invested or “put
into” a business venture to start it up and keep it operating.
 Profit
 Is the money the business owner makes after being repaid for the
investment and paying outer expenses.
 Entrepreneur
 Is a person who gets an idea to start up a business.
 Standard of Living
 Is a measure of a family’s buying power.
 Poverty
 When people don’t have enough money to meet their expenses
and basic needs.
 Cycle
 When the same events keep happening over again with the same
results.
 Personal Capital
 Includes anything you have that can help improve your economic
situation.
 Includes savings in the band, property, skills, or a willingness to
work hard.
 Down Payment
 The amount of money that a person can contribute to the
purchasing of a house.
 Mortgage
 The amount of money that a person borrows from a bank to go
towards the purchasing of a house.
 Cause and Effect
 The cause is what makes a change happen and the
effect is the change that results.
 Trigger
 Is the first event that causes a series of events to
occur.
 Quality of Life
 Includes all the things we need and want that
money can’t buy.
Worksheet
Question #2
 What is Economic Security?

 Economic Security means having enough
money to meet your needs- and a little extra
for the special things you want.

Worksheet #3

What are needs and wants and why are they important to people?
Are needs and wants only things that money can buy explain.

In our society most needs and wants can be met by money (i.e. new
cloths, house, car, etc.).
 The things that are essential for life are our needs.
 Needs include food, shelter, clothes, etc.

The things that are discretionary, that we can live without are our wants.
 Wants include things such as toys, games, musical instruments, cars, cellpones, etc.


However, there are needs and wants in our society that money cannot
buy (i.e. people need to feel safe, cared for, loved and have a sense of
belongingness).
Worksheet
Question #4
Be able to draw and explain how money
moves through the Canadian economy.
 See diagram p.44 textbook
Worksheet
Question #5
Capitalism
Socialism
A. Individual Freedom is highly valued
A. What’s best for the group is more
important than what’s best for the
individual
B. Production of goods and services is
in the hand of individuals
B. Production of goods and services is
in the hand of the government
C.Whether a person is able to meet
their needs and wants is determined
by whether they have the money to
pay for them.
C. Every person should receive
enough to meet his/her needs
D.Competition is important to help
create wealth and improve society
D.Competition is important to help
create wealth and improve society
Worksheet
Question #6
Know the difference between capital and profit.
Be able to list and explain three types of businesses in our economy.



The term Capitalism comes from the word capital.
Capital is the money that goes into starting a business and maintaining it
Profit is the money that business owners make after paying their expenses
(investment, salaries, supplies, etc)

There are many different kinds of business in our economy:
1.
Personal/Private Ownership: Home-repairs and gardening
2.
Family Business: Can be a group of family members working
together to operate a business or a business passed down from
generations (O’Brien’s Music Store; F.J Wadden and Sons).
3.
Larger Corporate Business: Can be owned by big companies
based in other parts of Canada or parts of the world (i.e.
Nissan; McDonalds Restaurants).
Worksheet
Question #7
 Chris Griffith’s Garrison Guitars (St. John’s, NL)
 Chris is an entrepreneur from St. John’s who got an idea to start
up his own guitar business (guitar repairs and building). He did
great research, study and put in a lot of hard work into his ideas.
 His big breakthrough was an idea to perfect a new type of
acoustic guitar made out of fiberglass rather than pieces of
wood. This guitar was quickly in demand in countries all over the
world.
 By 2002, his company, Garrison Guitars, was employing 57 people
and business was booming.

Worksheet
Question #8

The Cause and Effect Chain



Explains why certain things took place
The cause is what made a change happen.
The effect is the change that resulted.


Cause
Mill Closes

--------------
-------------
Effect
Workers become Unemployed
However, real life is more complicated than this resulting in a chain of
events caused by a trigger.
 For example we can go further to understand the effects of the workers
becoming unemployed.
Worksheet
Question #9