Economic Systems Study Guide

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
Market economies
Mixed economies
2. What are some advantages to mixed economic systems?
Command economy
Supply/ Demand
Crown cooperation
3. What are some disadvantages to market economic
4. What are some disadvantages to mixed economic
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
7. Why do governments intervene in mixed economic
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