Chapter 6

 Economics: the study of the production, distribution and consumptions of goods and services  Economic System: The way a society organizes the production, distribution and consumption of goods and services  Economy: the resources and processes involved in the production, distribution and consumption of goods and services

 Read comic strip on Pages  Has anyone had an experience like this?  Concert Tickets  Hockey Tickets  Limited Edition Products  Scarcity What do you think this word means?

 Scarcity: the idea that land (materials), labour and capital (money) limit the supply of what people want and need  Scarcity = essentially the fact that resources are limited  Basic questions of economics: What is needed/wanted? How will it be produced? Who will get it?

 Land The materials found in the natural environment needed to produce goods  Ex. Trees, Oil, Gold  Labour The physical and mental effort needed to produce goods and services  Ex. Farmers, Waitresses  Capital The money that people own or borrow, used to purchase equipment/tools/etc. to produce goods  Ex. Factory Machinery

 Economic Systems = the way to solve the basic problem of scarcity Different ideas = different economic systems  Privately Owned: the part of the economy owned and controlled by businesses and individuals  Publicly Owned: The part of the economy owned and controlled by government and paid for by taxes

 Economic Systems can be put on a continuum Their position on the continuum is dynamic (meaning it can move depending on the values of the government and society)

 Public Good: what is best for society as a whole  Canada’s Founding Principle: Peace, Order and Good Government  United State’s Founding Principle: Life, Liberty and the Pursuit of Happiness

 Read the Case Study on pages How do the different positions of Canada and the U.S reflect different values? How have Canada & U.S answered the question of public good differently? Do you think Canada is currently in a shift LEFT or Right?

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 Remember! Canada is a Mixed Economy, which means consumer choice does not drive all economic decisions, but it does drive a lot of economic decisions.  Mechanisms of Market Economies Supply and Demand Competition

 Supply: the products and services created by producers Supply involves Producers  Demand: The wants and needs of consumers for products and services Demand involves Consumers  Look at pages of textbook

 What if the supply of a product went down? How would that affect price and demand? What might cause the supply of a product to drop?  Why might demand for a product go up? What role might marketing play in demand?

 Competition: rivalry among producers to sell products to consumers  Competition = producers trying to get consumers to buy their products instead of another producer’s product  Read Case Study on page 212 What other cases of Competition can you think of?

 The opposite of competition is MONOPOLY  Monopoly = When a producer controls all supply of a product or service  Sometimes governments create monopolies to regulate essential services (ex. Canadian Wheat Board)  Sometimes governments intervene to prevent monopolies to restore competition THINK: Why is competition a good thing?

 Read pages in textbook Discuss  To what extent do you agree with the involvement of government in market economies? (use examples on )

 Unemployment Rate: the percentage of the workforce that does not have jobs  Strike: a cessation (stop) of work by workers. Strikes pressure employers to respond to issues that concern workers

 Collective Bargaining: negotiating as a group. It’s the key right established by unions for workers  Labour Union: an organization of workers that acts to protect workers’ rights and interests

 Lets do Case Study 2 together Turn to page in textbook Should Canada’s government help create and protect jobs? How is responsible citizenship different in mixed and market economies? How can economic systems have different strategies for creating jobs? Why might views about government’s role in creating or protecting jobs differ regionally in Canada?

 Working in partners, half of the class will complete Case Study 1 (p ) and half of the class will complete Case Study 3 (p ) You will discuss and write down answers for each of the questions presented throughout your Case Study

 Once you have completed your initial Case Study, find a NEW partner who did a DIFFERENT case study than you (ex. If you completed Case Study 1, your new partner must have completed Case Study 3)  Summarize your Case Study for your partner Discuss your answers to the questions

 Enterprises owned by the Crown (government)  Provide services required by public (often that cannot be funded by private business) Canada Post CBC Via Rail Royal Canadian Mint

 Their purpose is to Provide essential services Promote economic development Support Canadian culture and identity  Historical Example : Hudson's Bay Company Originally began by King Charles II (England) Canadian National Railways (CNR)

 The objective of the Competition Act is to “maintain and encourage competition in Canada in order to provide consumers with competitive prices and product choices” Where do you remember hearing about the government intervening under the Competition Act to protect consumers? Hint: page 215

 Read about the Winnipeg General Strike and compare to “Supreme Court rules that Charter protects collective bargaining” Page