Chapter 6. Principles and Practices of Market and Mixed Economies

Question 1

What is the economic spectrum?

Answer 1

It is a spectrum that has the 3 different kind of economy systems on it.

Question 2

3 basic economy question

Answer 2

What to produce, how to produce, who consumes it.

Question 3

Market Economy

Answer 3

An economic system that stresses the ideas of individualism and self-interest. Economic decisions are based on the actions of consumers and producers.

Question 4

Why do governments intervene in a market economy?

Answer 4

Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.

Question 5

Why is Canada viewed as a having a mixed economy?

Answer 5

Because of the role government plays, and because individuals still own private property. It shifts left and shifts right depending on the political party that forms the government.

Question 6

What is the role of the consumer in mixed and market economies?

Answer 6

They are the one who pays to consume the goods and services produced.

Question 7

What are some similarities in the way governments in Canada and the United States
intervene in the market economies?

Answer 7

The majority of the economy is privately owned and operated. Both governments pass laws to protect the consumer and competition in the market.

Question 8

How do the economic systems of Canada and the United States differ in answering the
basic economic question of scarcity?

Answer 8

The questions associated with scarcity are decided through supply and demand.