Economic Systems and Quality of Life

1. Chapter 6 To what extent do different economic systems affect quality of life?

2. Focus Questions: • What values shape the mixed and market economies of Canada and the United States? • How do economic decisions about scarcity, supply and demand, and competition affect individuals and groups?

3. Read into as a class on page 194. Post Reading Assignment In groups of 2 pretend that you are creating a budget for your household. Each group will be given $2500.00 for the month. Create a list of priorities for you family and decide where the money will go to. KEY TERMS Add these terms to your Key Terms sheets Economics Economic Systems Economy Introduction to Economic Systems

4. Budget Discussion Post Group Work • Did you group buy everything that you needed and wanted with the money you had? • Did you have enough money to meet your basic needs? • If you had more money, what would you have budgeted for? • How do you determine what was a priority and what was not?

5. What you did in your groups, is what governments do everyday. They must determine what they are going to provide for their societies based on the money (taxes) they collect. Some governments provide extensive goods and services for their societies and are very involved in economic decisions making. In other economic systems governments have more of a “hands off” approach to economic decision making by allow the private sector (businesses), and consumers make economic decisions. Governments base these decagons on the needs and wants of their societies as well as the values and belief system of the country they are running.

6. Chapter Task: Essay • You will be writing a social essay on the topic: “Should Canada and the United States have a common economic system with little government involvement?” Read page 196 for further details on this chapter task.

7. Prepare for your essay by: • Re-reading notes on social essay. • Memorizing a brainstorming technique. • Researching economic systems in Canada and the USA. • Create a chart to organize the information you gathered on these 2 economic systems. Market (USA) vs. Mixed Economy (Canada)

8. Look at the pictures on page 195. Then discuss as a class: How does economic decision making affect the jobs available to you and your family? Why might Canada’s government own a company? How might economic decision making and Canadian identity connect? 3. How are the economies of Canada and the USA separate but connected? Key Term Add this term to your Key Term sheets Crown Corporation Analyzing Photographs

9. Mrs. Ward baked you some muffins…Enjoy! Help Yourself to Muffins

10. Muffin Discussion • What problem did we encounter with the Muffins? 2. Why does this problem exist? 3. How could we have distributed the Muffins differently, if we knew the amount was limited? 4. What values would we base these decision about distribution on?

11. Muffin Discussion Answers • There was a shortage of muffins • The amount of muffins was limited and there were many students that wanted them. • Could have counted the number of students and muffins and then split them in half if there was not enough. Could have sold the muffins to those who wanted to pay for them. You could offer someone who did not have a muffins yours. No one gets any muffins because there is not enough to go around therefore not fair to everyone. 4. Base our decisions on who gets the muffins on the values of; generosity, sharing, greed, avoiding conflict, fairness, first come, first served.

12. Scarcity The Timbits symbolizes a major problem that all societies face: Scarcity When faced with scarcity, people and societies must make choices about how resources will be distributed. In mixed and market economic systems, consumers, producers, and governments make these decisions.

13. Viewing Rising Food Prices Threaten Millions Watch the CBC news video on rising food prices in the world. Pay attention to how the video relates to what you know about supply and demand.

14. Viewing • Overcoming Scarcity Thinking by Tim Sanders (Part 1) • http://www.youtube.com/watch?v=-AJ0NiQiBe0 • Abundance VS Scarcity by Tim Sanders (Part 2) • http://www.youtube.com/watch?v=9I-Jh6bAxV4&NR=1 • Economics Basics : Primer • http://www.youtube.com/watch?v=Tp5VyklK4Nw • Economics Basics : Episode 4 • http://www.youtube.com/watch?v=P0T6ya5qTb4&feature=related

15. Key Terms Add the following terms to your key term sheets Scarcity Factors of Production Land Labour Capital Supply Demand Economics in Action Read the cartoon on page 199-201. Then answer the 4 questions at the bottom of page 201.

16. Basic Economic Questions In economics, the idea that resources are limited are called scarcity. The basic questions of economics are about how to solve scarcity. • What is needed or wanted? (What goods should be produced?) • How will it be produced? • Who will get it? *The decisions we make about these questions create issues that affect our quality of life.

17. What is an Economic System • An economic system is a way to solve the basic problem of scarcity. • Different ideas and values result in different economic systems. • Governments decide what they are going to own in society and what goods and services they are going to provide to society. What they choose not to own, produce or provide is then provided by private companies.

18. Read the Economic Continuum on page 204 before starting your glossary words. Key Terms Privately owned Publicly owned Planned Economy Mixed Economy Market Economy The Economic Continuum

19. In groups of 2 Read the section on pages 205-208. After reading, create a graphic organizer comparing the 2 systems. Then individually complete the worksheet Handout 6-9. At the back of this worksheet, answer the Critical Thinking Challenges on page 205,206,208 in complete sentences. Glossary Shift Left Shift Right Public Good Cooperation Individualism Crown Corporations Case Study: Canadian Economic History versus U.S. Economic History

20. Class Discussion: Founding Principles Canada’s Founding Principle: “Peace, order and good government.” America’s Founding Principle: “Life, liberty and the pursuit of happiness.” Analyze these founding principles. Then Discuss: What do they suggest about the values that each country holds? How do these values relate to each countries economic system? Which founding principle do you prefer or connect to the most?

21. How do Market Economies Work? • Read through pages 209-213. As you are reading complete a chart that shows the advantages and disadvantages of a market economy. • Be prepared to discuss your chart with the class.

22. Class Chart: Market Economy

23. Key Terms Consumers Demand Producers Supply Competition Walk in Assignments 1. What if the supply of a product went down? How would that affect price and demand? 2. Why might demand for a product go up? For example, what role might the market play in demand? Supply and Demand

24. Competition Monopoly versus Competition The opposite of competition is a monopoly. A monopoly happens when one producer controls all supply of a product or service. Governments sometimes create monopolies as a way to provide essential services that require expensive infrastructure. In some cases, governments intervene to prevent monopolies and restore competition among producers. In the United States, Microsoft Corporation had to adjust its software product Windows to allow compatibility with browsers other than its own Internet Explorer.

25. ViewingCASE STUDY- Anti-Trust Laws: The American Government sues Microsoft http://www.youtube.com/watch?v=rEOHrPYcSUk

26. Walk in Assignment How do government decisions that affect competition in an economy reflect values of that economic system? Describe an example based on information from page 213.

27. Why do governments get involved in market economies? • To protect public safety. (example: safety standards on vehicles) • To protect consumers from unfair business practices. (example: insurance companiestaking advantage of consumers) • To inform consumers. (example: ingredients listed on products) • To break up monopolies and allow for competition in the market. (example: American government suing Microsoft) • To protect consumers from price fixing.(chocolate bar manufacturers)

28. Analyzing Photographs • Look at the photographs and read the captions on page 214 and 215. • In groups of 3-4 write a summary of the level of government involvement in each situation. • Discuss to “what extent do you agree with the level of government involvement in each situation?” • Then, think of an effective headline or title for each photo.

29. Connect to the Big Ideas • Your teacher will provide you with a newspaper or magazine. Your task; is to find a article that shows government involvement in the economy in either Canada or the United States. • Then complete the “spot the issue” worksheet. (this will be taken in for a mark). Keep the following questions in mind when choosing an article. 1. What circumstances triggered the government to be involved? 2. What impact does the government does this government involvement have on citizenship, identity and quality of life for others?

30. “How do economic decisions about scarcity, supply and demand, and competition affect individuals and groups?” Case Study #1: The Case of the Canadian Filmmaker Read the case study on pages 219-224. Then in Groups of 4 you will then discuss the following questions. Share your results with the class. • What are the positives and negatives that can result when the Canadian government intervenes into cultural industries? • Why would the Canadian government want to maintain and build our cultural identity?

31. Case study #2: The Case of the Disappearing Jobs Read the case study #2 on pages 226-228. Then in Groups of 4 you will then discuss the following questions and share your results with the class. • How does supply and demand impact job creation or job loses? • Why would “spin-off” jobs be impacted in a community if a factory shut down? • Should Canada’s government help create and protect jobs? • Based on the map on page 228, Why might views about government’s role in creating or protecting jobs differ regionally in Canada? • How might relocating to find work affect the identity of individuals? How might it impact their quality of life?

32. Case Study #3: The Case of the Workers’ Strike Read the case study #3 on pages 229-235. Then in Groups of 4 you will then discuss the following questions and share your results with the class. • Why do strikes happen? How do they affect quality of life? From whose perspective?. • Why do workers and unions need to bargain with each other? • How can the Supreme Courts decision on collective bargaining impact the government in a negative way? How does this decision reflect the values outlined in the Charter of Rights and Freedoms?

33. Key Terms Unemployment rate Strike Labour Unions Collective Bargaining Connect to the Big Ideas Read the letters to the editor on page 233. Then complete questions #1,2 page 233.