1. Grade 9 Social Studies Unit 2 Review 9.2.4 Compare and contrast the principles and practices of market and mixed economies.

2. What are the principles of a ‘market economy’? Economic decisions about production and prices are based on supply and demand with very little or no government intervention Principles include; competition, private ownership, efficiency, consumer sovereignty, self-interest People are responsible for their own economic and social well-being Consumers drive the production and prices

3. For what reasons do governments intervene in a market economy? Government involvement is extremely limited Sometime gov’t intervenes to protect consumers through law (ensures competition and eliminate price fixing) Intervene to ensure businesses adhere to minimum ethical practices (labour laws and environmental laws

4. For what reason is Canada viewed as having a ‘mixed economy’? An economy in which private ownership and competition are very important Government is more heavily involved Most of economy is privately owned, but gov’t does have ownership of some industries deemed essential to the country Gov’t has more regulations on businesses Supply and demand are not the only deciding factors of production and pricing Gov’t provides services such as welfare, pensions and health care

5. What is the role of the consumer in market and mixed economies? Largest driving force of production of goods Companies will produce what they know they can sell Consumer ‘sovereignty’ Drives competition to ensure quality and price are balanced Consumers can refuse to support a company known to abuse labourers or not adhere to environmental standards

6. To what extent do consumer actions reflect individual and collective identity? Identity can be reflected through the types of products a person decides to buy Consumer choices reflect his/her values Collective identity can be reflected in the same way if a group of people make specific choices about what to purchase

7. How has the emergence of labour unions impacted market and mixed economies? Labour Union is a group that operates to protect and promote the rights of workers Late 1800s they addressed difficult working conditions, long hours, and poor pay Industries must ensure policies and practice coincide with union expectations In Canada, unions have led to legislation changes Market economies believe that unions have a negative effect on the economy – foreign labour is cheaper Unions can exercise their right to strike, disrupting the economy

8. What are some similarities and differences in the way governments in Canada and the USA intervene in the economy? Majority of economy is privately owned in both countries Gov’t passes law to protect consumers and competition Set labour and environmental protection standards Both governments provide some form of social services

9. Cont’d… The extent of their involvement differs Canadian social services are considerably more comprehensive with a more access USA social services are smaller with limited access Canada deems some services essential and there is no upfront fee (health care) USA – citizens pay for health services out of pocket or through insurance

10. Cont’d… Canada has more publicly owned companies (Crown Corporations) These companies are owned by the gov’t to protect and promote economy, sovereignty, and cultural identity Examples; Canadian Broadcasting Company (CBC), Bank of Canada, Royal Canadian Mint and Via Rail

11. How do the economic systems of Canada and the USA differ in answering the basic economic question of scarcity? Scarcity is an economic condition in which people and society have unlimited wants and needs, but there are limited resources (land, labour, and capital) Three basic questions dictate the type of economy of a country – What should be produced? – How should it be produced? – Who should have access to the products?

12. Cont’d… Generally, in Canada and the USA the answer to scarcity is through supply and demand Products in demand will drive the economy and those who can afford will have access In Canada, some products are deemed essential and the gov’t may outright regulate the production and distribution so that all citizens have access

13. In a market economy, the main duty of the government is to… A)Provide services for the poor B)Prevent the creation of monopolies C)Establish appropriate environmental standards D)Allow the economy to operate with a minimum of regulation The role of the consumer in a private enterprise economy is to… A)Provide the demand for products in order to stimulate the economy B)Make sure that levels of competition are maintained C)Ensure that consumer goods are of good quality D)Regulate levels of production The government of a mixed economy would most likely respond to increasing levels of unemployment by… The main purpose of the government in a model free market economy is to… A)Attempting to balance the budget by cutting back government spending B)Increasing spending on social programs and public works C)Increasing taxes and raising interest rates D)Offer financial support to unemployed and low-income citizens A)Pass laws to protect private property B)Place tariffs on inexpensive foreign goods C)Use the taxation system to create income equality D)Offer financial support to unemployed and low-income citizens

14. In the Canadian mixed economy, there is a significant level of government ownership of… A)Retail stores B)Alcohol production C)Health care facilities D)Manufacturing production Each of the following economic actions are taken by both the Untied States and Canadian governments except… A)The provision of social services B)The encouragement of competition in the market C)The promotion of private ownership in most sectors D)The provision of publicly owned and universal health care

15. Which of the following government actions is most characteristic of a mixed economy? A)The government allows supply and demand to control the price of both labour and goods B)The government establishes a minimum wage but does not regulate the price of goods C)The government regulates both the supply and demand and the wages workers are paid D)The government regulates wages and prices of goods The question mark in the given equation could be replaced with the term… A)Supply and demand B)Opportunity cost C)Consumerism D)Scarcity Source Unlimited wants/needs + limited resources = ?