Download Grade 9 Social Studies

Grade 9 Social Studies
Unit 2 Review
9.2.4 Compare and contrast the
principles and practices of market and
mixed economies.
What are the principles of a ‘market
economy’?
• Economic decisions about production and
prices are based on supply and demand with
very little or no government intervention
• Principles include; competition, private
ownership, efficiency, consumer sovereignty,
self-interest
• People are responsible for their own economic
and social well-being
• Consumers drive the production and prices
For what reasons do governments
intervene in a market economy?
• Government involvement is extremely limited
• Sometime gov’t intervenes to protect
consumers through law (ensures competition
and eliminate price fixing)
• Intervene to ensure businesses adhere to
minimum ethical practices (labour laws and
environmental laws
For what reason is Canada viewed as
having a ‘mixed economy’?
• An economy in which private ownership and
competition are very important
• Government is more heavily involved
• Most of economy is privately owned, but gov’t does
have ownership of some industries deemed essential
to the country
• Gov’t has more regulations on businesses
• Supply and demand are not the only deciding factors of
production and pricing
• Gov’t provides services such as welfare, pensions and
health care
What is the role of the consumer in
market and mixed economies?
• Largest driving force of production of goods
• Companies will produce what they know they
can sell
• Consumer ‘sovereignty’
• Drives competition to ensure quality and price
are balanced
• Consumers can refuse to support a company
known to abuse labourers or not adhere to
environmental standards
To what extent do consumer actions reflect
individual and collective identity?
• Identity can be reflected through the types of
products a person decides to buy
• Consumer choices reflect his/her values
• Collective identity can be reflected in the
same way if a group of people make specific
choices about what to purchase
How has the emergence of labour unions
impacted market and mixed economies?
• Labour Union is a group that operates to protect and
promote the rights of workers
• Late 1800s they addressed difficult working conditions,
long hours, and poor pay
• Industries must ensure policies and practice coincide
with union expectations
• In Canada, unions have led to legislation changes
• Market economies believe that unions have a negative
effect on the economy – foreign labour is cheaper
• Unions can exercise their right to strike, disrupting the
economy
What are some similarities and differences in the way
governments in Canada and the USA intervene in the
economy?
• Majority of economy is privately owned in
both countries
• Gov’t passes law to protect consumers and
competition
• Set labour and environmental protection
standards
• Both governments provide some form of
social services
Cont’d…
• The extent of their involvement differs
• Canadian social services are considerably
more comprehensive with a more access
• USA social services are smaller with limited
access
• Canada deems some services essential and
there is no upfront fee (health care)
• USA – citizens pay for health services out of
pocket or through insurance
Cont’d…
• Canada has more publicly owned companies
(Crown Corporations)
• These companies are owned by the gov’t to
protect and promote economy, sovereignty,
and cultural identity
• Examples; Canadian Broadcasting Company
(CBC), Bank of Canada, Royal Canadian Mint
and Via Rail
How do the economic systems of Canada and the USA
differ in answering the basic economic question of
scarcity?
• Scarcity is an economic condition in which
people and society have unlimited wants and
needs, but there are limited resources (land,
labour, and capital)
• Three basic questions dictate the type of
economy of a country
– What should be produced?
– How should it be produced?
– Who should have access to the products?
Cont’d…
• Generally, in Canada and the USA the answer
to scarcity is through supply and demand
• Products in demand will drive the economy
and those who can afford will have access
• In Canada, some products are deemed
essential and the gov’t may outright regulate
the production and distribution so that all
citizens have access
In a market economy, the main
duty of the government is to…
The role of the consumer in a private
enterprise economy is to…
A)
B)
C)
A)
D)
Provide services for the poor
Prevent the creation of monopolies
Establish appropriate environmental
standards
Allow the economy to operate with
a minimum of regulation
B)
C)
D)
The government of a mixed economy
would most likely respond to increasing
levels of unemployment by…
A)
B)
C)
D)
Attempting to balance the budget by
cutting back government spending
Increasing spending on social
programs and public works
Increasing taxes and raising interest
rates
Offer financial support to unemployed
and low-income citizens
Provide the demand for products in
order to stimulate the economy
Make sure that levels of
competition are maintained
Ensure that consumer goods are of
good quality
Regulate levels of production
The main purpose of the government in
a model free market economy is to…
A)
B)
C)
D)
Pass laws to protect private property
Place tariffs on inexpensive foreign
goods
Use the taxation system to create
income equality
Offer financial support to unemployed
and low-income citizens
In the Canadian mixed economy,
there is a significant level of
government ownership of…
Each of the following economic
actions are taken by both the
Untied States and Canadian
governments except…
A)
B)
C)
D)
A) The provision of social
services
B) The encouragement of
competition in the market
C) The promotion of private
ownership in most sectors
D) The provision of publicly
owned and universal health
care
Retail stores
Alcohol production
Health care facilities
Manufacturing production
Which of the following government
actions is most characteristic of a
mixed economy?
A) The government allows
supply and demand to control
the price of both labour and
goods
B) The government establishes a
minimum wage but does not
regulate the price of goods
C) The government regulates
both the supply and demand
and the wages workers are
paid
D) The government regulates
wages and prices of goods
Source
Unlimited wants/needs + limited
resources = ?
The question mark in the given
equation could be replaced with the
term…
A)
B)
C)
D)
Supply and demand
Opportunity cost
Consumerism
Scarcity