Economic system part 3

Question 1

Mixed economy

Answer 1

• Most world economies are between a market economy and a centrally planned one.
• Canada has social programs such as universal health care, employment insurance, and the Canada Pension Plan.
• Canada also has thriving competitive businesses.

Question 2

Private Property

Answer 2

• Property is owned by individuals, corporations or government
• Government owns schools, parks and real estate
• Government sets regulations on ownership
• Corporations run by the government are called Crown Corporations (Canada Post, CBC)

Question 3

Profit

Answer 3

• Is encouraged but taxed to support government projects and provide social assistance
• Taxes are collected at the federal and provincial levels through: Sales tax, Income tax and Corporate taxes
• Municipal projects are funded through property taxes

Question 4

Competition

Answer 4

• Strong competition exists amongst corporations
• However, the government may also be a competitor

Question 5

Advantages

Answer 5

1. Individual incentive
2. Basic social services
3. Consumer protection

Question 6

Disadvantages

Answer 6

• Higher taxation
• Individuals have little input into how taxes are spent
• Gov’t intervention may suffocate growth
• Less motivation to work hard