CHAPTER 6
To what extent do different economic systems affect quality of life?
Chapter Opener Activity
 In groups of 2 - 3, decide what you would spend a
$500 paycheque on.
RULES
Must be
spent within
one week
Collaborate
with your
group and be
prepared to
share with
the class
Money represents
a paycheque:
simulate what you
would target your
spending on
Describe the
reasons for
your choices
ITEM
COST
TOTAL
Results
Did you buy any
of these?
Food
water
clothing
entertainment
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?
Analyze the Photographs pgs 194-195
 Based on these
photos, what does
economic decision
making mean for
Canadians?
 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?
Complete Chapter 6 Vocabulary
Word
Definition
Example
Pg 195 text
1. How might economic
decision making and identity
connect?
3. Why might Canada’s
government own a
company?
2. How does economic decision making
affect the jobs available to you and
your family?
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.
Introducing the Task
Page 196
 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.
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?
Basic principles of Mixed
and Market economies
 What’s scarcity?
Canada
vs.
the United States
 What’s an economic system?
 How do market economies work?
 Why do governments get involved in market
economics?
History of the U.S. And
Canadian economies
Study
guide
How each country’s
underlying values
are linked to its
history
What role to you believe economic systems play in
supplying you with the things you use everyday?
 Read Economics in Action, pgs 199 – 201
 Consider the questions following the comic,
specifically
 How government and consumer actions contribute to
the economic system
Scarcity
 What is the problem?
 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.
 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?
 Generosity, sharing, avoiding conflict
What’s Scarcity?
Read pgs 202-203
 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
Three factors of producti0n that limit the Page
203
supply of what people want and need.
Factors of
Production
Land
Labour
Capital
Definition
Example
Economic spectrum… in detail
MORE GOV’T
INVOLVEMENT
Planned
Economy
LESS GOV’T
INVOLVEMENT
Mixed Economy
Market
Economy
Planned Economy
 More Gov’t involvement
 The 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 resources
 Individual consumers have little to no say on
economic decision making.
Market Economy
 Less 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 system
 Individuals makes decisions on how to use resources
 Individuals make economic decisions by choosing
what to buy.
Question!
 What is better: a Planned Economy or a
Market Economy?
VS.
Mixed Economy
 Combines 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 Economy
 The 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?
Planed
economy
Canada
USA
Market
economy
The Public Good
 What’s best for society as a whole
Cooperation:
Individuals consider
each other & set aside
their own interests to
achieve what’s best for
society
 Individualism:
VERSUS
What’s best for
each person
individually adds
up to what’s best for
society
CROWN CORPORATIONS
 A company owned by Canada’s government to
provide products and services to Canadians.
 Why?!
 Provide essential services
 Promote economic development
 Support 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 Auction
 Spend your money
Name
Price
 What sets the price?
 How does the producer decide on what to sell?
 Who gets the good?
 What is Equilibrium?
Page 210
SUPPLY AND DEMAND
 See 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?
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
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?
GRAFFITI
1.
Benefits of
mixed
economies
3.
Benefits of
market
economies
2.
4.
Disadvantages
of market
economies
Disadvantages
of mixed
economies
1. The answer to the question that is presented on the web page in Source
I is
A. wealthy investors
B. individual citizens
C. corporate executives
D. 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 X
B. Position W or Position Z
C. Position X or Position Y
D. 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 W
B. Position X
C. Position Y
D. 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?
Wrap Up Your Task
Must hand in sheet
with essay
 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.