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SS9 ECONOMICS 101 – The Short Version

SS9 ECONOMICS 101 – The Short Version

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SS9 ECONOMICS 101 – The Short Version. Meet the Normal Family:. I need new pom-poms!. I want a new snowboard!. Don’t these kids know that money doesn’t grow on trees?!. This family has an ECONOMIC PROBLEM !. WHY?. Student Notes…Pay Attention!. - PowerPoint PPT Presentation

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Page 1: SS9 ECONOMICS 101 – The Short Version

SS9 ECONOMICS 101 – The Short Version

Page 2: SS9 ECONOMICS 101 – The Short Version

Student Notes…Pay Attention!

This family has anECONOMIC PROBLEM!

WHY?

I need new pom-poms!

I want a new snowboard!

Don’t these kids know that money doesn’t grow

on trees?!

Meet the NormalFamily:

Page 3: SS9 ECONOMICS 101 – The Short Version

Because WANTS are UNLIMITED and RESOURCES are LIMITED!

Page 4: SS9 ECONOMICS 101 – The Short Version

3 Types of Resources

• NATURAL RESOURCES: soil, fish, minerals, etc.

• HUMAN RESOURCES: people and their skills and knowledge

• CAPITAL RESOURCES: money or anything that can be used as collateral to get money (property, rare metals, etc.)

Page 5: SS9 ECONOMICS 101 – The Short Version

RESOURCES are known as FACTORS OF PRODUCTION (FOP) in ECONOMICS

(meaning you need all three in order to produce goods and services)

NATURAL RESOURCES = LAND

HUMAN RESOURCES = LABOUR

CAPITAL RESOURCES = CAPITAL

LAND + LABOUR + CAPITAL = FOP

Page 6: SS9 ECONOMICS 101 – The Short Version

A LIMITED SUPPLY of any RESOURCE (or FOP) is called SCARCITY.

EVERY society deals with SCARCITY. The way a society deals with scarcity defines its

ECONOMIC SYSTEM.

Page 7: SS9 ECONOMICS 101 – The Short Version

Other Words for Scarcity?

• Shortage• Deficit• Shortfall• Decreased Amount• Rare• Few• Limited

Page 8: SS9 ECONOMICS 101 – The Short Version

The 3 Basic Economic Questions (3BEQs)(how a society attempts to deal with scarcity)

• What is needed or wanted?

• How will it be produced?

• Who will get it?

How these questions are answered determines a country’s economic system. Sometimes the government makes the decisions, sometimes it doesn’t. For example:

Page 9: SS9 ECONOMICS 101 – The Short Version

The Economic Continuum

Left Center Right

Communist

Centrally Planned

Totalitarian

Planned

Socialist

Mixed

Modified Market

Capitalist

Market

Free Enterprise

Laissez Faire

Page 10: SS9 ECONOMICS 101 – The Short Version

Left (Planned)

• gov’t answers 3BEQs• gov’t owns and manages FOP• gov’t plans what will be produced • gov’t decides how to use

resources• individuals have little influence on

gov’t decisions• consumers have no say in

economy

Page 11: SS9 ECONOMICS 101 – The Short Version

Centre (Mixed)

• combines private ownership and gov’t control to answer 3BEQs

• private businesses own and manages some FOP• gov’t owns and manages some FOP (CROWN

CORPORATIONS)• gov’t control of economy varies depending on who

is in power• consumers have some say in economy

Page 12: SS9 ECONOMICS 101 – The Short Version

Right (Market)

• private business and consumers answer 3BEQ• private businesses own and manage FOP• consumers determine what is needed or wanted• producers meet consumer demand• business succeeds if they produce what consumers want• no gov’t involvement in business

Page 13: SS9 ECONOMICS 101 – The Short Version

ECONOMIC SYSTEMS can SHIFT LEFT or SHIFT RIGHT depending on social and political factors

affecting the economy, such as VALUES, STANDARD OF LIVING and QUALITY OF LIFE.

Page 14: SS9 ECONOMICS 101 – The Short Version

What do Economic Systems Value?

• The PUBLIC GOOD is about what’s BEST for society as a WHOLE. Governments differ on how to achieve it.

• COOPERATION: set aside individual interests to meet the needs of the group; recognizes needs and circumstances; values EQUITY

• INDIVIDUALISM: what’s best for individuals will add up to what’s best for society; values creativity and INDEPENDENCE.

Page 15: SS9 ECONOMICS 101 – The Short Version

There are extremes at either end of the continuum. Can you think of some examples of other countries we can place on the continuum?

Shanghai ChinaMexicoRussiaBritain

North Korea

Page 16: SS9 ECONOMICS 101 – The Short Version

LET’S COMPARE:

CANADA’S ECONOMY“Peace, order, and good government”

• reflects idea of cooperation• gov’t makes economic decisions on behalf of citizens• MIXED because citizens, business and gov’t make economic

decisions• Gov’t operates Crown Corporations when it is in the public

interest to do so because:– it’s too expensive for private business to operate, or, – the population is too small for the business to be profitable for an

individual or company

Page 17: SS9 ECONOMICS 101 – The Short Version

LET’S COMPARE: cont.

USA’S ECONOMY“life, liberty, and the pursuit of happiness” • spirit of individualism based on history of independence• values individual economic decision-making; gov’t does not like

to intervene• market forces determine economy• works through forces of competition and the idea of supply

and demand• federal gov’t only controls necessary services (some social

supports, postal service, some healthcare

Page 18: SS9 ECONOMICS 101 – The Short Version

CANADA’S ECONOMY“Peace, order, and good government”

SHIFT LEFT• universal healthcare• Canada Pension Plan for seniors• establish Crown Corporations Air Canada, CBC,

Via Rail, Canada Post, AGT

Page 19: SS9 ECONOMICS 101 – The Short Version

CANADA’S ECONOMY“Peace, order, and good government”

SHIFT RIGHT• cuts in gov’t spending• privatize crown corporations (Air Canada, Via

Rail, AGT=Telus)• NAFTA increases influence of market in

economy

Page 20: SS9 ECONOMICS 101 – The Short Version

USA’S ECONOMY“life, liberty, and the pursuit of happiness”

SHIFT LEFT• Old Age Security for seniors• Farm support (subsidies)• Public works projects (roads, dams, bridges…)• USPS

Page 21: SS9 ECONOMICS 101 – The Short Version

SHIFT RIGHT• reduced gov’t spending• reduced regulations/rules on trade

USA’S ECONOMY“life, liberty, and the pursuit of happiness”

Page 22: SS9 ECONOMICS 101 – The Short Version

What are some of the things people living in either country might value in terms of STANDARD OF LIVING and QUALITY OF LIFE? Let’s make a comparison:

What could be considered NEEDS? WANTS?

Page 23: SS9 ECONOMICS 101 – The Short Version

Coming up next:

• What is the relationship between SCARCITY and SUPPLY and DEMAND?

• What role does COMPETITION play in an economic system? What is the relationship between SCARCITY and COMPETITION?