To what extent do different economic systems affect quality of life?

CHAPTER 6

Chapter Opener ActivityIn groups of 2 - 3, decide what you would

spend a $500 paycheque on.

RULESMust be spent within one week

Money represents a paycheque: simulate what you would target your spending on

Collaborate with your group and be prepared to share with the class

Describe the reasons for your choices

ITEM COST TOTAL

Results

Food water clothing entertainment

Did you buy any of these?

To what extent do different economic systems affect quality of life?

What values shape the mixed and market economies of Canada and the United States?

How do economic decisions about scarcity, supply and demand, and competition affect individuals and groups?

FOCUS QUESTIONS

Analyze the Photographs pgs 194-195

Think – Pair - Share

1. What might influence decisions about the price of products? 2. How are decisions made concerning what products to manufacture? 3. How do these decisions affect your quality of life?

Based on these photos, what does economic decision making mean for Canadians?

Complete Chapter 6 Vocabulary

Word Definition Example

Pg 195 text

3. Why might Canada’s government own a company?

Graffiti Activity

2. How does economic decision making affect the jobs available to you and your family?

1. How might economic decision making and identity connect?

4. “Should Canada and the United States have a common economic system with little government involvement?”

Exploring the Chapter Issue

You will research and develop an informed response to the chapter task question:“Should Canada and the United States have a common economic system with little government involvement?”

Use handout 6-4 to help organize your research.See pages 12-13 in the text for tips on developing

an informed response.

Chapter Task

You will reflect and illustrate your response in a position paper that includes:An analysis of the benefits, disadvantages and

viewpoints of mixed and market economies in Canada and the U.S.

An explanation of your personal views on how much involvement Canada’s government should have in our economic system.

Your position on the chapter task question, supported by evidence

A persuasive expression of your ideas, taking particular purposes and audiences into consideration, including the Minister of Finance.

Introducing the Task Page 196

Let’s Get Started!Using Handout 6-4, collect examples of

the benefits and disadvantages of mixed and market economies.

Write your examples in the chart.You will need to gather additional

evidence to support your position. Research online or print news media for stories about the benefits and disadvantages of the economic systems of Canada and the U.S.

What values shape the mixed and market economies of Canada and the United States?

What’s scarcity?What’s an economic system?How do market economies work?Why do governments get involved in

market economics?

Basic principles of Mixed and Market economies

Canada vs.

the United States

History of the U.S. And Canadian economies

How each country’s underlying values are linked to its history

Study guide

What role to you believe economic systems play in supplying you with the things you use everyday?

Read Economics in Action, pgs 199 – 201Consider the questions following the

comic, specificallyHow government and consumer actions

contribute to the economic system

Scarcity

How would we have distributed the candy differently, if we had known that the amount was limited? What values would we base these decisions on?

Not enough candy for everyone who wanted it

Why does this problem exist?The amount of candy was limited and there

were many students who wanted it.

What is the problem?

Generosity, sharing, avoiding conflict

What’s Scarcity?This hands-on simulation (hopefully!)

helped you to understand the basic economic principle of scarcity.

The candy symbolizes a major problem that all societies face: scarcity.

People make choices because of scarcity and that these choices are based on what they value and believe is important.

Consumers, producers and governments make these decisions

Read pgs 202-203

Three factors of producti0n that limit the supply of what people want and need.Factors of Productio

n

Definition Example

Land

Labour

Capital

Page

203

Economic spectrum… in detail

Planned Economy

Mixed Economy Market Economy

MORE GOV’T INVOLVEMENT

LESS GOV’T INVOLVEMENT

Planned EconomyMore Gov’t involvementThe Gov’t makes all the decisions about how

to solve scarcity.Famine in Ukraine??

Resources are publicly owned.Gov’t makes decisions on how to use

resourcesIndividual consumers have little to no say on

economic decision making.

Market EconomyLess Gov’t involvement.The choices of individuals solve scarcity.

Think of the chocolates in class… (did you share, keep them all because you were hungry?)

Private business own & manage resources.Businesses succeed if they produce what

consumers (buyers) want!If a business fails, the Gov’t does not get

involved to help!

Market Economy (cont.)Resources are privately owned.

USA health care systemIndividuals makes decisions on how to use

resourcesIndividuals make economic decisions by

choosing what to buy.

Question!What is better: a Planned Economy or a

Market Economy?

VS.

Mixed EconomyCombines Private Ownership & Gov’t

Control.Some resources are publicly owned & some

are privately owned.Individuals & Gov’t both make decisions

about what to produce.Individual Consumers & the Gov’t influence

economic decision making

Mixed EconomyThe level of Gov’t involvement fluctuates

depending on what political party is in power.

What’s an Economic System? (pg. 204)

Examine the continuum on page 204

How do the different positions of Canada and the U.S. Reflect different values?

USACanadaPlaned economy

Market economy

The Public GoodWhat’s best for society as a whole

Individualism: What’s best for each person individually adds up to what’s best for society

Cooperation: Individuals

consider each other & set aside

their own interests to

achieve what’s best for society

VERSUS

CROWN CORPORATIONSA company owned by Canada’s

government to provide products and services to Canadians.

Why?!Provide essential servicesPromote economic developmentSupport Canadian culture and identity

Case Study – Canadian Economic History vs. U.S. Economic History (pgs 205-208)

How do the founding principles of Canada and the U.S. answer the question of the public good different? How have Canada and the U.S. answered the question differently at different points in their histories? Why?

How might the history of Canada shape values and attitudes in Canada?

How might the history of the U.S. Shape values and attitudes in the U.S.?

Case Study – Canadian Economic History vs. U.S. Economic History (pgs 206-208) CONTINUED

Individually, read the section and create a graphic timeline comparing the two systems.

Example

1600’s to 1776

Founding principle of the U.S. reflects the idea of individualism. Connects to the roots of the U.S. as a colony of Britain .

Silent AuctionSpend your money

Name PriceWhat sets the price?How does the producer decide on what to

sell?Who gets the good?What is Equilibrium?

Page 210

SUPPLY AND DEMANDSee other slide show

Think about it….

Mixed economies often must raise taxes in order to sustain all of the social services such as welfare, free health care, low cost university education and pension systems for the elderly which can lead to a stagnant economy.

In essence, critics claim that mixed economies enable irresponsible behavior.

Do you agree or disagree with this statement? Explain.

COMPETITION In economics it is the rivalry among producers

to sell products to consumers

Describe three ways you are impacted

by competition on a daily basis.

MONOPOLY Happens

when one producer controls all supply of a product or service (opposite of competition)

MONOPOLY Why do

governments allow monopolies? What are some monopolies that exist?

Why do governments prevent monopolies?

Check out “Did You

Know” on pg 213 for

the answers!

Activity – Case Studies In groups of 4-5, you will explore and

make a presentation on one of the case studies in the text (pages 219 – 233)

Use Handout 6-10 to help you gather information.

Present your findings to the class

Groups 1, 3, and 7

Case Study #1

Pages 219-224

Groups 2 and 6

Case Study #2

Pages 226-228

Groups 5 and 4

Case Study #3

Pages 229-235

6-8 Questions

Handout 6-10

Differing Views on Degree of Government Involvement in Job Creation and Protection

For Government Involvement Against Government Involvement

- Government creates equality between citizens

- Private companies are in the best position to make economic decisions about jobs

- Government takes care of people in society who are vulnerable.

- People losing jobs is a result of supply and demand; they should find new jobs supplying people with something they want

- Private companies just think about profits – not the effects of business on people’s quality of life

- Government involvement to protect or create jobs costs everyone in taxes and lost opportunities

- Government should consider jobs a public good, like education, taking action when required.

- Private companies respond to consumer demand with creativity and determination, creating a better product and more jobs.

What’s your view?

Disadvantages of mixed

economies

Disadvantages of market

economies

Benefits of mixed

economies

1. 2.

3. 4.Benefits of

market economies

GRAFFITI

1. The answer to the question that is presented on the web page in Source I is

A. wealthy investorsB. individual citizensC. corporate executivesD. government officials 

2. A conclusion that can be drawn from Source I is that Canada’s economic system would be best placed at either of which two positions on the economic spectrum in Source II?

A. Position W or Position XB. Position W or Position ZC. Position X or Position YD. Position Y or Position Z

3. The messages in Source III convey the idea that some Canadians believe Canada’s economy should be most closely aligned with which position on the economic spectrum in Source II?A. Position WB. Position XC. Position YD. Position Z

4. Which of the following questions identifies an issue most clearly evident in the information in all three sources?A. Is government ownership of businesses beneficial to society?B. Should foreign investors be allowed to own businesses in Canada?C. What role do consumers play in determining political decisions in Canada?D. Should government provide tax breaks to stimulate economic development?

Page 236Wrap Up Your Task

Formulate your position on the chapter task question:“Should Canada and the United States have a

common economic system with little government involvement?”

Summarized and organize your information in your chart and compile your evidence.Assessment Rubric

6-7 Organizer

Tips page 236

Must hand in sheet with essay