1. Mixed and Market Economies:
Canada and the US
Focus Question: What values shape the mixed and market economies of Canada and the United States?

2. Economy
Economy: The resources and processes involved in the production, distribution and consumption of goods and services
As a consumer, you are part of Canada's economy
What you own and buy reflects what you value, and also what is available for you to buy
What role do you think economic systems play in supplying you with things you use everyday?

3. Economics In Action Comic time!
Turn to page 199 in your textbook and answer the questions based on the comic
You only have minutes to complete it
If not finished, it is for homework – due next class

4. Scarcity The comic “Economics in Action” shows an example of scarcity
This is when in economics, the idea that materials, labour and capital limit the supply of what people want and need
The popularity of the game, mixed with other factors, had made it scarce
What could be done about this situation? What do you believe should be done?
There are some things which we need that are limitless, for the most part – like air
Most things, however, are finite/limited

5. Resources
The reason for this limitation is quite simple – resources themselves are limited
Resources = money, labour, and materials
All are used to supply people what they want and need
Resources can be limited for many different reasons
Why would the availability of raspberries be limited?
Scarcity is the idea that resources are limited
Basic economic questions are about solving this issue
What is needed or wanted?
How will it be produced?
Who will get it?
How might the government get involved if people's wants and needs aren't being met?

6. Scarcity Factors
What impacts might decisions based on using land have on the economy?
There are three basic factors that affect the supply of what people need and want
Land, labour and capital
Land = everything found in the natural environment
Includes renewable and non-renewable resources
Labour = the physical and mental effort needed to produce goods and services
Farmers, servers, construction workers, etc
Capital = the money that people have or borrow to buy other resources to produce goods and services
How do choices concerning jobs affect the workforce?
What if the capital used to start a business was invested in something else?

7. Economic System
An economic system is created to attempt to solve the problem of scarcity
There are many different ideas about how to best organize an economy – this leads to different systems
Like a political spectrum, you can put economic systems on a continuum
These positions are not static, but dynamic
They don't stay there, but often shift left or right depending on the situation
Privately Owned: In economics, the part of the economy owned and controlled by businesses and individuals
Publicly Owned: In economics, the part of the economy owned and controlled by government and paid for by taxes

9. Crown Corporations
A crown corporation is a company owned by Canada's government
The reasons for them are:
To provide essential services
To promote economic development
To support Canadian culture and identity
One reason Canada has a mixed economy is because of the use of crown corporations
The US has some, but not nearly as many as Canada

10. Case Study Handout Pages 205-206 and 208 in your textbook
We will read the textbook sections together and discuss and answer the questions

11. Market Economies
Although mixed and market economies are different, they are related
Both are affected by the individual choices of consumers
These add up to create overall economic decisions for a society
In pure market economies, consumers drive ALL economic decision making
In mixed economies, they drive a considerable amount of decision making
There are two main mechanisms of market economies
Supply and demand
Competition

12. Supply and Demand
Supply and Demand is a cause and effect relationship which is related to price
Supply and Demand affect quality of life because they affect the prices of products we buy, the availability of products, and jobs connected to creating products
Supply = is about producing things people want; created by producers
Producers = those who create products and services (the supply)
Demand = the wants and needs of the consumers for products and services
Consumers = those who use products and services

15. Q: What if the supply of a product went down
Q: What if the supply of a product went down? How would that affect price and demand?
Q: What might cause the supply of a product to drop?
Q: Why might demand for a product go up? What role might marketing play in demand?

16. Supply & Demand - Examples
In groups, you will look at a supply and demand scenario
You will predict what will happen to the demand, supply and price of the specified item
You will then share and discuss your example
Following this, you will go on the website below and test your knowledge through interactive supply and demand scenarios
Make sure to take a look at the graphs!
ui2.htm

17. Competition
Competition is just like it sounds – it involves producers working to get consumers to buy their products
Products attract consumers in different ways
Price, quality, selection, etc
Many things can affect competition in an economic system
Values of consumers
Decisions by government to become involved in decisions about supply and demand

18. Examples of Competition
How do stores in a mall try to influence your ideas about what you need and want?
How does this connect to the variety and quality of services a mall offers?
How do government decisions that affect competition in an economy reflect values?

19. Government Involvement
Although market economics relies on the decisions of individual consumers, the government sometimes gets involved
This may be to inform, protect or ensure good practices by businesses
If consumers are not being fairly treated
Many governments have requirements that certain products need to contain a list of ingredients
It is illegal for producers to “fix prices” among themselves
In 2007 there was an investigation under the Competition Act
It was believed that chocolate manufacturers were fixing their prices
The objective of the act is to “maintain and encourage competition in Canada in order to provide consumers with competitive prices and product choices.”

20. Monopoly vs. Competition
The opposite of competition is monopoly
This occurs when one producer controls all the supply of a product or service
This often occurs when the government takes control of something that is deemed an essential service
ICBC, Canadian Wheat Board
In some cases, though, the government actually intervenes to stop companies from having a monopoly
Microsoft Corporation