1. People’s Republic of China
According to Friedrich Hayek and Milton Friedman, what should control a country’s economy, markets or governments?
Markets!
Next, we’ll be looking at China, where it is the government that controls the economy.

2. People’s Republic of China
Read the opening paragraph on page 232
Explain the following terms:
Central Government
Common Programs
‘peoples democratic dictatorship’
How are the roles of government different in China compared to Canada?
Using the handout and a partner, are you able to record historical events in countries around China that may have influenced changes in China…?

3. People’s Republic of China
Read the rest of page 232
What other connections can you add to your map?
Imagine you’re collective farmers in China. Respond to the following questions:
What if you had to turn over all your produce to the state?
What if you were then allowed to sell some of your produce and keep the earnings?
How would you respond to the comment: “Plans and markets are simply stepping stones…to universal prosperity and riches?

4. People’s Republic of China
Read the last two sections on page 233
Why do you think China was closed to international trade after the revolution?
Why would the government have wanted to keep international trade to a minimum?
Why might the government have changed its policies during the 1980’s?
With your partner, complete #1 in Explorations on page 233