This document provides an overview of economic concepts like scarcity, supply and demand, and different types of economies. It explains that Canada has a mixed economy where some goods are bought and sold in markets, some are provided publicly, and some are shared. It introduces the simulation Civic Mirror, where students will make economic decisions about distributing limited resources. Questions are posed about what role governments should play in regulating markets and prices.
The Ultimate Guide to Choosing WordPress Pros and Cons
Civic mirror economics
1.
2. SCARCITY
The basic problem
faced by all
economies is scarcity
People have unlimited
wants
The earth has limited
resources to satisfy
these wants
3. ECONOMIC DECISIONS
What to produce?
How will we produce it?
Who gets what we
produce?
Shared?
Sold?
Given?
4. CANADA’S ECONOMY
Canada distributes goods and services through a mixed
market economy (mostly market but some other
systems too)
Most bought and sold (through a market)
Food, iPods,…
Some are given to those in need
social assistance, legal aid, …
Some are provided for everyone
education, emergency services…
Some are shared
Parks, sidewalks,…
Government usually pays for goods and services that are
provided or shared
5. MARKET ECONOMIES
Brings all consumers and sellers
together
Sellers Supply goods and services
Consumers Demand goods and services
Supply and Demand works in opposite
directions
Suppliers want a high price
Demanders want a low price
Most efficient suppliers will sell to
Demanders willing to pay the highest
price
7. MARKET ECONOMIES
Society gets the most it can out of its
scarce resources
But…
Rich can buy more than poor
Some people will make poor
consumption decisions
people will buy things they don’t
need
Some people won’t be able to buy
things they need
8. COMMAND ECONOMIES
Goods and services
are distributed by
government
Ideally in a fair and
equal way, so
people get
everything they
need
Government needs
lots of money or
resources
9. COMMAND ECONOMIES
Everyone should have equal
access to goods and
services
But…
Citizens have less spending
choice
Government has lots of power
and control
People may want different
things than what the
government provides
There is less incentive to work
hard
10. CIVIC MIRROR
Resources, such as health
care and energy, are limited
Needs and wants are unlimited
The simulation will determine
how goods are distributed
(who gets what)
Economic event – every spring
there will be a day to buy,
sell and trade
11. CIVIC MIRROR - PRICES
Sellers (suppliers) want the highest
price
Buyers (demanders) want the lowest
price
A fair price will be somewhere in
between these amounts
Something is worth whatever
someone is actually willing to pay
for it
12. QUESTIONS TO PONDER
Should our economy be an open, free economy or should the
government regulate it?
If a price is considered unfair, should the government step in to
control prices?
But then it is more difficult to distribute goods because they
no longer go to highest bidder
How will one determine who to sell resources to if the
resources are limited?
Is it okay to deny a citizen a resource if the result will be the
death of a family member?