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 scarcity.

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

decision making Ex. Former USSR

On this end of the spectrum, the choices of individuals solve scarcity

Private businesses manage and sell their own resources

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 control

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

fits?

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

fits?

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