Social 9 - Unit 6: Scarcity and Economies

List the Factors of Production

-land

-labour

-capital

Land

Land consists of all the materials found in the natural environment needed to produce goods and services, such as renewable resources and non-renewable resources.

Labour

Labour consists of the physical and mental effort needed to produce goods and services.

Capital

Consists of the money that people own or borrow, used to purchase equipment, tools and other resources to produce goods and services.

Draw out the Economic Continuum. Make sure to highlight government involvement.

Canada is in placed in the middle, while the U.S is placed in between mixed economy and market economy.

Planned Economy

At the left end of the spectrum, government makes all the decisions about how to solve scarcity. It owns and manages the resources needed to produce things. It plans what will be produced and decides how to use limited resources.

Mixed Economy

A mixed economy that combines private ownership and government control.

Market Economy

At the right end of the spectrum, the choices of individuals solve scarcity. Private businesses own and manage resources. They sell their products to consumers, who make their own decisions about what to buy. Businesses succeed if they produce what consumers want. Otherwise, they fail. The government does not get involved.

The founding principal of Canada's economy

Peace, order and good government

The founding principal of the U.S economy

Life, liberty and the pursuit of happiness

Canada's economy: Worldview about how to achieve the public good

Worldview values equity: responding to others in a way that recognizes their needs and circumstances.

U.S. economy: Worldview about how to achieve the public good

Worldview values individual creativity and independence.

Crown Corporations

A company owned by Canada's government to provide products and services to Canadians.