Economics: Needs and wants Production Distribution It is the social science that deals with the production, distribution, and consumption of goods and services. The study of how to divide up a world of limited resources.

Grade 7 Social Studies Capitalism vs. Socialism

As you know from reading about the traditional economies of First Nations and Inuit peoples, there are differing forms of economic systems in the world. Two common economic systems are capitalism and socialism.

 Production of goods and services is in the hands of the government.  Every person should receive enough to meet his or her needs.  Cooperation is important to help create wealth and improve society  What’s best for the group is more important than individual freedom.  Individual freedom is highly valued  Production of goods and services is in the hands of individuals.  Whether or not people can meet their needs depends on how wealthy they are.  Competition is important to help create wealth and improve society. Which of these two systems sounds better to you?

Few countries have economic systems that are entirely capitalist or socialist. Q What is Canada’s? A Capitalism… with some socialism buot in (universal health care, social programs)

Capitalism: an economic system where investment in and ownership of the means of production, distribution, and exchange of wealth is mainly in the hands of private individuals or corporations. (It comes from the word capital which means money and investments.) Socialism: an economic system where ownership and control of the means of production and distribution, and exchange of wealth is mainly in the hands of government.

Complete: The roots or the foundation of Canada’s economic system today came from… (p43)