Economics Hl Essay

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Economic Goals
Income equity and full employment are two economic goals that are complementary. By minimizing involuntary unemployment in the labour force, keeping Canadians working and contributing to the economy and further compensating each worker fairly through incentives, people would be happy to purchase their needs and wants. As people respond to incentives, and are fairly compensated they would be able to fulfill their needs and wants. Parts of these incentives are passed on to another employed person or business. They would also respond to incentives and would also be able to fulfill their needs and wants. This process continues to repeat as people exchange their incentives to maximize happiness. This increases spending and selling, while spreading the wealth around and also increases a person’s well-being. Exchanging benefits the traders, a customer and a business. So not only does an individual benefit but the people and businesses surrounding them and the Canadian economy as well.
Price stability and viable balance of payments are two economic goals that are conflicting. The country’s rate of inflation could affect the costs of imports and exports as the general price doesn’t always match with another’s countries. The inflation rates may also be different in different countries and this may also affect the costs of imports and exports. The price of one item in one country and the price of the same item in another country may be different due to the differences

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