Definitions work sheet
You are in charge of all the money coming into
your home every month
What factors would you have to consider in
deciding how to spend that money?
Everybody in you house will have different
ideas on what's important and what it should
be spent on
We will looking at the economic systems of
Canada and its largest trading partner, the
What values shape these systems, how they are
different, and how they are the same
Cartoon, pg 199
Why didn’t the manufacturer make more
Why did the truckers go on strike?
Why did the store decide to sell the game for
Why would anyone buy it for $99.99?
The demand for super cyborg city was so great
it created a scarcity of the product
To many people wanted the product, and not enough
copies were available
Some things people need are unlimited- ex air
Most things that people need or want are
limited. This is because resources are limited
In economics resources include, money, labour,
Materials found in the natural environment needed
to produce goods and services, such as renewable
and non-renewable resources
What impacts might this decision about using the land
have on the land?
Labour consists of the physical and mental effort
needed to produce goods and services
Construction workers building a house- if there aren’t
enough workers , fewer houses get built
How do choices
concerning jobs effect the
Consists of money that people own or borrow, used to
purchase equipment, tools, and other resources needed
to produce goods and services
Ex- setting up a plane production plant requires money
What if the capital that
built this airplane were
invested in something
else? How might this
impact airports and air
Get into 4 teams
Each team will choose whether they would
prefer to live in a jungle or a zoo. Make sure
you write your decision at the top of the page.
Answer the questions from that perspective.
Who would rather live in a jungle? Who would choose
the zoo? Explain your answers.
What are the most important reasons for your personal
choices? What values or beliefs emerge in these
Can you think of countries that could be compared to
jungles or zoos?
What does the country you have chosen have in
common with the jungle or zoo?
– the living conditions
– the type of government
– the economic activities
– the individual happiness and collective well-being.
What are the drawbacks to living in the environment
you initially chose?
An economic system is a way to solve the basic
problem of scarcity.
Economic systems can be placed on a
spectrum; their spot on that spectrum depends
on the underlying values of that society
More government control Less government control
At this end of the spectrum, the government
makes all the decisions about how to solve
The Government owns and manages all the
resources needed to produce things
Resources are publicly owned
Government makes all decisions about resources
Individual consumers have little influence on
Ex. Former USSR
On this end of the spectrum, the choices of
individuals solve scarcity
Private businesses manage and sell their own
Businesses succeed if they sell products
consumers want, otherwise they fail
The government does not get involved
Ex. The United States
Combines private ownership and government
Individuals and government make decisions
about what to produce
The level of government involvement depends on
what political party is in power
Liberal Party-More involvement
Conservative Party-Less involvement
Ex- Canada, Sweden
The Canadian and American economic systems
are very similar, but they developed from
different starting points
Their starting points involved different answers to
the fundamental question “what’s the best way to
achieve the public good?”
The Public Good and Cooperation
The belief that individuals must consider each other
and set aside their individual differences to achieve
what’s best for society
What style of economic system do you think this idea
The Public Good and individualism
the belief that what's best for each person individually
adds up to what best for society
What style of economic system do you think this idea
Canadian Economy pg 206-207
How might the history of Canada shape the
value and attitudes in Canada?
The U.S. Economy pg 208
How might the history of the U.S. shape the
values and attitudes in the U.S.?
Video- VHS Capitalism vs. communism
Public Good Worksheets
Supply and demand control the market system
through a cause-and-effect relationship related
Supply and demand effect quality of life
because they affect the prices of products we
buy, the availability of products, and jobs
connected to creating products.
Supply and Demand Activity
Demand is the quantity of a good that consumers
will buy. The demand for the good is related to
the price of that good.
Generally, the higher the price of a good, the less
people will want to buy and therefore, the lower
the demand. When something is expensive,
people will purchase less of it or a substitute.
The opposite is also true: the lower the price of a
good, the more people will want to buy and the
higher the demand will be. When something is
cheap, people will want to buy more of it.
Supply is the quantity of a good that producers
are willing to make and offer for sale in the
market. The supply of a good is related to the
price of that good.
Generally, the higher the price of the good, the
more producers will want to make and the
greater the supply.
The opposite is also true: the lower the price of
a good, the less producers will want to make
and the lower the supply will be.
Competition is about striving to get consumers
to buy their products
Producers attract consumers in a variety of
ways-price, product quality, and advertising
Many factors can affect competition, including
the value of consumers and decisions by the
government to get involved in decisions about
supply and demand
Ex: coke vs. Pepsi, ford vs. GMC, Nike, vs. Adidas
2 Donut shops case study- pg 212
Prices in a free market system are
determined by the interaction of supply
The price of a
good will naturally
move to a level
where the quantity
EQUAL to the
At this point, the
market is said to
be at EQUILIBRIUM.
In a free market system, the equilibrium
price and quantity of most goods are
constantly changing as the market adjusts
automatically to changes in the level of
supply and demand.
Firms are encouraged to increase
production of those goods that are in high
demand and to reduce production of less
Goods are made available to consumers
at the lowest possible price
Ford Motor company grew because of their
ability to supply cars to the consumers for a
lower price due to the invention of the assembly
Market economies rely on the decisions of
individuals consumers and producers
Sometimes the government may get involved
to inform, protect or ensure good and fair
Ex. The B.C. government started its own auto
insurance program because it believed private
insurance companies were to expensive
Can you think of any other reasons why the
government may get involved?
The free market economy does not grow at a
constant rate. Instead, it goes through a
continuing series of “boom” and “bust”
periods called the business cycle.
period of prosperity and economic growth
high level of employment
wages and profits rise, therefore spending
GDP (gross domestic product) is high
Economic decline and crisis
production decreases, therefore unemployment
rises and wages fall
consumers restrict spending, therefore prices
and profits drop
RECESSION – mild and short lived downturn
DEPRESSION – longer and severe period of
Governments intervene in the economy by
changing their level of spending and the
supply of money to try to even out the boom
and bust cycles
Look at the examples on pg 214 and 215
To what extent do you agree or disagree with
the involvement of the government in each
Entrepreneur – a person who ORGANIZES a
business and takes the RISKS associated with
competing in a market economy
They are the heart of the market system
The following are clips from CBC television’s
reality show Dragon’s Den:
Dragon's Den 2
Read the case studies on Page 226 and 229 and
answer the questions
Break into 3 groups
I will read some “what if “ Statements. You as
a group must decide what will happen
Will the supply/demand/price go up?
Will the supply/demand/price go down?