Download Economic Systems Fill

Types of Economic Systems Notes
(to accompany SmartBoard Notes)
Name:
Class:
Complete the following notes with assistance from the SmartBoard presentation
and in-class lessons.
Economic Spectrum
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More Gov’t Involvement
Planned Economy
(AKA
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Less Gov’t Involvement
Mixed Economy
(AKA
Market Economy
) (AKA
)
)
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Jungle Vs. Zoo
How would you describe a Jungle?
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How would you describe a Zoo?
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Which economy is most like a Jungle? Explain.
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Which economy is most like a Zoo? Explain.
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How would you describe a Game Reserve?
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Which economy is most like a Game Reserve? ____________________________________________
The American Economy
Capitalism *_______________________________________________________________________________________________
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Laissez-Faire
Free-Enterprise System
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The basic motivation in the Market Economy is __________________________________________
Some Important Characteristics of the Market Economy
Profit: ______________________________________________________
Profit Incentive:
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Private Property: _______________________________________________
Competition: __________________________________________________
A Very Important Dude: _______________________________
Economist (1723 – 1790)
Philosopher
Father of the Market Economy
Argued for “The Invisible Hand”
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The Invisible Hand:
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In a Market Economy, the consumers have choice!
Consumer Sovereignty:
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The goal of a market economy is to best meet the desires of consumers. The consumer is
the king!
Free-Market Economy
Positives
Negatives
The Canadian Economy
Why Do Governments Intervene in a Market Economy?
Canada is a ______________ Economy.
In a Mixed Economy such as Canada, the government plays a more active role than in a
Free Market.
__________________AND _____________ both play dominant roles
Monopoly ________________________________________________________________________
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What does this mean for prices?
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How was the Canadian Wheat Board a Monopoly?
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*** The Wheat Board was officially abolished by the Canadian Gov’t in 2012 – and lead
to private competition among producers.
(This action was a shift towards the ____________________________________)
The Government Intervenes …
Examples:
The B.C. government started its own auto insurance program because it believed private
insurers were making auto insurance too expensive.
In the United States, Microsoft Corporation had to adjust (based on government orders)
its software product Windows to allow compatibility with browsers other than its own
Internet Explorer.
The Canadian Government passed the Competition Act to
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