What Are We Learning Today?

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What Are We Learning Today?

• 9.2.4 Compare and contrast the principles and
  practices of market and mixed economies.

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Limited Unlimited Resources

• Some things ppl need are unlimited. For example,
  ppl need air. Air is usually freely, available,
  unless for example, you happen to be scuba
  diving.
• Most things ppl need or want, however, are
  limited. This is because resources are limited.
  In economics, resources include the money,
  labour, and materials to supply what ppl want and
  need.

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Reasons for Limited Resources

• Resources can be limited for a number of reasons.
  For example, think of things you buy at the
  grocery store, like fresh berries. Many factors
  can limit the supply of fresh berries for
  example, the growing season in Canada and trade
  agreements with other parts of the world.

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What is Scarcity?

• In economics, the idea that _________ are _______
  is called scarcity. It is an ________ idea that
  ____ (materials), ______ (ppl), and _______
  (money) limit the supply of what ppl want and
  need.
• The basic questions of economics are about how to
  solve scarcity
• What is needed or wanted?
• How will it be produced?
• Who will get it?

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What Creates Scarcity?

• The 3 basic ______ __ ________ interact to
  limit the supply of what ppl need and want. These
  include land, labour and capital.
• Land
• Land consists of all the ________ found in the
  ______ environment needed to produce ______ and
  ______, such as renewable resources (trees,
  raspberries) and non-renewable resources (oil,
  gold).

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(No Transcript)
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Labour

• Labour consists of the ______ and ______ effort
  needed to produce goods and services
  (agricultural workers to produce foods, servers
  to staff restaurants).

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Capital

• Consists of the _______ that ppl own or borrow,
  used to purchase __________, ______ and other
  resources to produce goods and services.

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Whats an Economic System?

• An economic system is a way to _____ the _____
  problems of scarcity. Different ideas about how
  best to organize an economy result in different
  economic systems.

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Planned Economy

• At this end of the spectrum (left), govt makes
  all the decisions about how to solve scarcity. It
  owns and manages the resources needed to produce
  things. It plans what will be produced and
  decides how to use limited resources.

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Planned Economy Characteristics

• Resources are ______ ________ (the part of the
  economy owned and controlled by govt and paid
  for by taxes).
• Govt make decisions on how to use resources.
• Individual ________ have _____ influence on
  economic decision making.

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Market Economy

• At this end of the spectrum (right), the choices
  of individuals solve scarcity. Private businesses
  own and manage resources. They sell their
  products to consumers, who make their own
  decisions about what to buy.
• Businesses succeed if they produce what consumers
  want. Otherwise, they fail. The govt does not
  get involved.

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Market Economy Characteristics

• Resources are _______ ______(the part of the
  economy owned and controlled by businesses and
  individuals).
• Individuals make decisions on how to use
  resources.
• Individual consumers _____economic decision
  making by choosing what to buy.

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Mixed Economy

• A mixed economy combines private ownership and
  govt control. For example, private businesses
  own some resources and the govt owns others. The
  level of govt involvement fluctuates depending
  what political party is in power.
• It is found near the centre of the spectrum.

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Mixed Economy Characteristics

• Some resources are ______ owned and some are
  _______ owned.
• Individuals and govt both make decisions about
  what to produce.
• Individual _______ and ____ influence economic
  decision making.

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The Economic Continuum

• You can put different economic systems on a
  continuum (range). An economic systems position
  on the continuum is _______ (active) and depends
  on the underlying values of a society and its
  govt.
• The positions of Canada and the US on the
  continuum reflect a traditional perspective on
  differences between their economies. Their actual
  positions on the continuum shift right and left,
  depending on the political party in power.

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Whats a Crown corporation?

• A Crown corporation is a company owned by
  Canadas ______ to provide products and services
  to Canadians. The reasons for their creation
  include
• To promote _______ services.
• To promote __________ development.
• To support Canadian ______ and ______.
• Economists say Canada has a mixed economy partly
  because of its Crown corporations. The US also
  has some, but not as many as Canada.

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Examples of Crown corporations (pg. 207)
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Why do govts get involved in market economics?

• Market economics relies on the decisions of
  individual consumers and producers. Sometimes
  govts get involved to inform, protect or ensure
  ______ _______. They may intervene if they feel
  consumers are not being fairly treated.
• For example, the B.C. govt started its own auto
  insurance program because it believed private
  insurers were making auto insurance too
  expensive. (pg. 214)

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The Competition Act

• In 2007, Canadas govt launched an
  investigation, under the Competition Act, into
  price fixing among chocolate manufacturers.
• The objective of the Competition Act is to
  _______ and ________ competition in Canada in
  order toprovide consumers with competitive
  prices and product choices.

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Whats a Labour Union?

• Workers organize labour unions (an _________ of
  workers that acts to protect workers _____ and
  _______) to represent their needs to employers.
  Unions provide a way for workers to act as a
  group. Unions make ________ ________ (negotiating
  as a group) possible.
• By organizing workers into groups, unions can
  pressure employers about wages, working hours and
  workplace safety. _______ (stopping work) are a
  form of ________. During strikes, workers as a
  group refuse to do their jobs.

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Unions Continued

• Today, unions exist in many parts of Canadas
  economy, including transportation, education,
  health care, forestry, construction,
  manufacturing, public service and others.
• Because of unions, Canada has labour laws, such
  as the Canada Labour Code. Canadas labour laws
  establish that workers have a right to form
  unions. They also describe bargaining procedures
  for unions and employers, and set standards for
  wages, hours, safety, holidays and other matters.