Economic Systems Study Guide 9.2.4 compare and contrast the principles and practices of market and mixed economies by exploring and reflecting upon the following questions and issues: � What are the principles of a market economy? (ER) � Why do governments intervene in a market economy? (ER, PADM) � Why is Canada viewed as having a mixed economy? (ER, PADM) � What is the role of the consumer in market and mixed economies? (ER) � To what extent do consumer actions reflect individual and collective identity? (ER, I) � How has the emergence of labour unions impacted market and mixed economies? (ER) � What are some similarities and differences in the way governments in Canada and the United States intervene in the market economies? (ER, PADM, GC) � How do the economic systems of Canada and the United States differ in answering the basic economic question of scarcity? (ER, PADM, GC) Practice Questions Key concepts: Economic systems 1. What are some advantages to market economic systems? Economy Market economies Mixed economies 2. What are some advantages to mixed economic systems? Command economy Scarcity Supply/ Demand Competition Monopoly Crown cooperation 3. What are some disadvantages to market economic systems? 4. What are some disadvantages to mixed economic systems? Factors of production (Land, Labor, Scarcity) Private ownership/ Public ownership 5. What is an economic system? Public good Labor unions 6. What is scarcity? Why is it important in terms of Government intervention economic systems? What creates scarcity? Wealth distribution Taxes Individualism Collectivism 7. Why do governments intervene in mixed economic systems? 8. What does collectivism mean? 9. What does individualism mean? 10. Why is competition important in market economic systems? What is a monopoly? 11. What does supply and demand refer to? What is the relationship between supply, demand and price? 12. Why is there a large wealth gap in the Untied States? Is it possible for the wealth gap to be narrowed? 13. What does “the invisible hand” refer to? Which economic system does this concept relate to? 14. What does private ownership of resources mean? What does public ownership of resources mean? 15. Why does the government of Canada create programs aimed specifically at improving the economic condition of woman and aboriginal populations?