Mixed and Market Economies

1. Mixed Economies

1.1. What is it?

1.1.1. A mixed economy combines private ownership and government control. For example, private businesses own some resources and the government owns others. In mixed economies, the level of government involvement fluctuates depending what political party is in power

1.2. Characteristics

1.2.1. Some resources are publicly owned and some privately owned.

1.2.2. Individuals and government both make decisions about what to produce. Individual consumers and government influence economic decision making.

2. Market Economies

2.1. What is it?

2.1.1. In a market economy, the choices of individuals are what are seen as the answer to solving scarcity. Private businesses own and manage resources, they sell their products to consumers, who make their own decisions about what to buy

2.2. Characteristics

2.2.1. -Resources are privately owned.

2.2.2. -Individual consumers drive economic decision making by choosing what to buy.

3. Why Canada is viewed as having a Mixed Economy.

3.1. -Canada is said to have a mixed economy because of the role the government plays in the economy, and because individuals still own private property and can decide what they want to produce.

3.2. -Canada’s position on the economic sides is not entrenched. It can shift left to right depending on what political party is in power.