1. Unit 3 Some Elements of Culture
Chapter 10
Economy and Culture

2. INTRO Do you earn money? Do you spend money?
people working, manufacturing, growing food, selling goods…all examples of having a role to play in the economy

3. WANTS vs NEEDS
make a list!!

4. Economics Economics: 3 QUESTIONS
the study of how we use limited resources to meet our wants and needs
every day we make decisions about how we use our time, money, energy, and materials
3 QUESTIONS
(1). What goods and services should be produced?
(2). How should they be produced?
(3). Who gets these goods and services, and how much do they get?

5. Consider…
If you were in government and had to make decisions about the money being spent in schools, how would you prioritize your spending?

6. Economics Terminology
Profit: in business, when income is greater than your costs, you have made a profit.
Market: any places where buyers and sellers come together
could be an actual place (“farmer’s market”), could be online (“world oil market”)
markets set prices…that may change for various reasons
Entrepreneur: someone who sets up and runs a business – accepts responsibility for any risks involved
Trade-off: in business (or life, in general), to have one thing you may have to give up having something else

7. Economic Resources What are some economic resources????
Natural Resources - useful things in nature…land, water, etc.
Goods – needs and wants…clothes, cars, iPads, etc.
Services – jobs we need or want done…health care, education, etc.
Capital – resources used to produce goods and services…money, computers, tractors, tools, etc.
Labour – workers…carpenters, teachers, police officers, etc.

8. Economic Systems
In the past there were 3 main types of economic systems:
(1). Traditional – a system where decisions about how to use resources are based on practices of the past
(2). Command – a system in which all farms, businesses, and factories are owned by the government, and all production decisions are controlled by the government
(3). Market – a system in which decisions about how to use resources are made by buyers and sellers
***see Figure 10.5 on p.144 of textbook for more detail
today, most countries have a mixed market economy, which includes features of all three
in this type of economy the government controls some aspects such as safety of working conditions and some goods and services

9. In an economic system people are:
PRODUCERS: a person/community that makes goods or provides services
CONSUMERS: a person who buys and uses goods and services

10. CHINA’S ECONOMY AGRICULTURE/FARMING
1949 –when CCP came to power, this was the main economic activity
government (dictatorship) decided what crops and livestock to raise, how much to produce, and set prices
created communes:
large farms run by a group of people who share in the work and the income
there were approx communes by 1979, each with about people…necessities of life (food, clothing, shelter provided by government)…few luxuries (TV, radio, etc.)

11. INDUSTRIES During the time of Mao… coal and iron mines
large government-owned factories built
shortage of some goods such as TV’s, radios, jeans, etc.
1958
all people had to do some form of physical labour
(ex. shovelling, building dams, canals)
expectations were increased for production on communes and factories
DID NOT GO AS PLANNED (about 20 million people died, production went down)

12. ECONOMIC CHANGE 1978 –new leader, Deng Xiaoping
more economic freedom to grow economy
more international trade
foreigners could start businesses
180 million farms given to private owners
privately owned factories permitted
Special Economic Zones created with greater economic freedom (lower taxes and wages, foreign- owned companies have set up businesses)
resulted in significant growth in China’s economy in the past 30 years

13. Some of China’s IMPORTS/EXPORTS
IMPORTS (items brought into China)
machinery
cars
rubber
wheat
oil
EXPORTS (items coming out of China)
bicycles
clothing
shoes
cloth
telephone and sound equipment

14. ECONOMIC CHANGE AND CULTURE IN CHINA
changing economy – has influenced a cultural change
more goods for people to buy
television and Internet bring new ideas (could be good and bad…)
more pollution
increased demand for electricity

15. GLOBALIZATION OF TRADE
GLOBAL TRADE:
a trend towards removing barriers to trade among countries around the world
in the past, many goods from other countries were limited or taxed to protect the economy of that country
today, FREE TRADE is more common – taxes on some goods have been lowered or removed
Canada’s biggest trading partner is the USA (ex. cars, newsprint, oil, computers,…)
1994 –NAFTA –North American Free Trade Agreement: Canada, USA, and Mexico agreed to remove taxes on some goods
European Union: a group of countries in Europe that have a free trade agreement in place

16. Three main economic regions that produce most of the world’s goods and services:
(1). North America (15% of world’s exports)
(2). European Union (41% of world’s exports)
(3). East and Southeast Asia (21% of world’s exports)

17. Pros and Cons of GLOBAL TRADE
more opportunities to buy and sell
greater choice of goods
more people involved in developing new products
wages will increase
improves food supply and education
human rights improved with introduction of new ideas
workers in China and other countries are being taken advantage of
doesn’t help all countries (ex. Africa)
good-paying jobs are lost in Canada
greater importance on exports than on a local sustainable economy
scarce resources in some countries used to provide cheap products to richer countries
loss of local culture to big global companies