1. CIVIC MIRROR ECONOMICS

2. SCARCITY The basic problem faced by all economies is scarcity  People have unlimited wants  The earth has limited resources to satisfy these wants

3. ECONOMIC DECISIONS What to produce? How will we produce it? Who gets what we produce?  Shared?  Sold?  Given?

4. CANADA’S ECONOMY Canada distributes goods and services through a mixed market economy (mostly market but some other systems too)  Most bought and sold (through a market)  Food, iPods,…  Some are given to those in need  social assistance, legal aid, …  Some are provided for everyone  education, emergency services…  Some are shared  Parks, sidewalks,… Government usually pays for goods and services that are provided or shared

5. MARKET ECONOMIES (CAPITALISM) Brings all consumers and sellers together  Sellers Supply goods and services  Consumers Demand goods and services Supply and Demand works in opposite directions  Suppliers (businesses) want a high price  Demanders (consumers) want a low price Most efficient suppliers will sell to consumers willing to pay the highest price

6. CAPITALISM -- SUPPLY AND DEMAND Demand – an inverse relationship between Price and Quantity Supply – a positive relationship between Price and Quantity Surplus – Supply exceeds Demand (price usually goes down) Shortage – Demand exceeds Supply (price usually goes up)

7. MARKET ECONOMIES -- CAPITALISM Society gets the most it can out of its scarce resources But… Rich can buy more than poor Some people will make poor consumption decisions  people will buy things they don’t need Some people won’t be able to buy things they need

8. COMMAND ECONOMIES (SOCIALISM/COMMUNISM) Goods and services are distributed by government Ideally, in a fair and equal way, so people get everything they need Government needs lots of money or resources

9. COMMAND ECONOMIES – SOCIALISM/COMMUNISM Everyone should have equal access to goods and services But… Citizens have less spending choice Government has lots of power and control People may want different things than what the government provides There is less incentive to work hard

10. CIVIC MIRROR Resources, such as health care and energy, are limited  While needs are limited, wants are unlimited The simulation will determine how goods are distributed (who gets what) Economic event – every spring there will be a day to buy, sell and trade

11. CIVIC MIRROR - PRICES Sellers (suppliers) want the highest price Buyers (demanders) want the lowest price A fair price will be somewhere in between these amounts – where the two sides agree Something is worth whatever someone is actually willing to pay for it

12. CIVIC MIRROR HEXES AND THE ECONOMY Money Making Hexes E/I Hex Farms Health Care & Education Insurance, Security & Health Care Technology & Arts and Entertainment Apartments What about Houses? What about Environmental Hexes?

13. QUESTIONS TO PONDER  Should our economy be an open, free economy or should the government regulate it?  If a price is considered unfair, should the government step in to control prices?  How will one determine who to sell resources to if the resources are limited?  Is it okay to deny a citizen a resource if the result will be the death of a family member?

14. SOURCES http://www.google.ca/imgres?q=civic+mirror&um=1&hl=en&sa=N&biw=1024&bih=571&tbm=isch&tbnid=eqndR UOh2eg8pM:&imgrefurl=http://civicmirror.com/blog/the-hex-auction-civic-mirror-classroom-video-series- episode-10&docid=DFmaaFY6-N851M&imgurl=http://civicmirror.com/wp/wp-content/uploads/hex- auction.jpg&w=551&h=550&ei=x9tuUKvmBLOLyQHBzIHoCg&zoom=1&iact=hc&vpx=87&vpy=124&dur=44 23&hovh=224&hovw=225&tx=146&ty=178&sig=117872012917030589214&page=1&tbnh=118&tbnw=1 18&start=0&ndsp=18&ved=1t:429,r:0,s:0,i:71 http://www.google.ca/imgres?q=canada&um=1&hl=en&biw=1024&bih=571&tbm=isch&tbnid=TCf9qzNPyepKK M:&imgrefurl=http://www.ciceducation.org/&docid=QAuNM01SuO45hM&imgurl=http://www.ciceducation.o rg/Canada%252520Maple%252520Leaf.jpg&w=314&h=355&ei=iNxuUIvtBePmygGL6IG4Bg&zoom=1&iact =hc&vpx=584&vpy=197&dur=938&hovh=239&hovw=211&tx=128&ty=176&sig=1178720129170305892 14&page=1&tbnh=160&tbnw=142&start=0&ndsp=8&ved=1t:429,r:6,s:0,i:153 http://www.google.ca/search?hl=en&sugexp=les%3B&cp=8&gs_id=p&xhr=t&q=civic+mirror&bav=on.2,or.r_gc.r_ pw.&biw=1024&bih=571&wrapid=tljp1349442422612012&um=1&ie=UTF- 8&tbm=isch&source=og&sa=N&tab=wi&ei=w9tuUJWsL4fFyAG76ICwDA http://www.google.ca/imgres?q=civic+mirror&um=1&hl=en&sa=N&biw=1024&bih=571&tbm=isch&tbnid=WHgM cMgILxuyGM:&imgrefurl=http://students.wrdsb.ca/mahas1773/2011/04/07/my-civic-mirror- experience/&docid=N0PHBsgRefpArM&imgurl=http://students.wrdsb.ca/mahas1773/files/2011/04/video. jpg&w=290&h=170&ei=x9tuUKvmBLOLyQHBzIHoCg&zoom=1&iact=hc&vpx=523&vpy=168&dur=5156&hov h=136&hovw=232&tx=147&ty=70&sig=117872012917030589214&page=1&tbnh=96&tbnw=163&start= 0&ndsp=18&ved=1t:429,r:3,s:0,i:80 Civic Mirror Manual