1. Business and the Community

2. 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)

3. 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

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

5. 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)

6. 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

7. 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)

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

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