Business and the Community

Economic Systems The way government and businesses work together to provide goods and services to consumers Pure Command Economy Gov. owns natural resources, farms, factories, machinery, offices, most businesses Gov. makes all decisions Ex: Communist government (North Korea)

Pure Market Economy Also called free market, free enterprise, or capitalist system Actions of buyers/sellers of goods/services direct the economic system What will be produced, competition Market-place-directed Ex: United States

Modern Mixed Economy Contain elements of first two economic systems See p. 64 Fig. 4.1

Private and Public Sectors Private sector Businesses are individually owned and operated Purpose is to make a profit Public sector Different levels of government providing services to Canadians Schools, hospitals, public utilities Purpose not usually to make a profit List 3 companies falling under public ownership and explain why they were created (p. 65)

Public-Private Partnership Public and private businesses that have gone together to conduct business Ex: Olympic village in Montreal, Confederation Bridge (PEI and NB) Advantage that private business can use ties and power with public that public business might have

Privatization Publicly owned business or industry is sold to the private sector Private sector might do a better job Ex: Canada’s ports (ship, air), Hydro Ontario (1998)

In-Class Read case study p. 68-69 List 3 advantages and 3 disadvantages of privatization

Class Work Page 67 1a, b 2a, b 3a, b