Lesson 15 — Activity 3: Comparing the Two Economies
Completion requirements
Lesson 15 — Activity 3:
Comparing the Two Economies
Warm Up
Now that you have learned about market and mixed economies, you have seen that they are very different. Let's take a look at some of those differences.
The key factor that distinguishes a mixed economy from a market economy is that the government plays a key role in a mixed economy.
- A mixed economy includes government, consumers, producers, and employees.
- A market economy is more based on producers and consumers interacting with each other, with little input from the government.
Here are some other differences between the two economies:
Within a mixed economy, an individual's wealth focuses on the community's success as a whole and the fact that people will pour money back into their communities to continue the success of the business. However, in a market economy, an individual's income will rise or fall with
success or failure. The individuals do not count on the community's
wealth, but rather, on their own.
As well, within a mixed economy, the production, distribution, and other
activities are limited for free decisions and both private and
government intervention is visible. In the market economy on the other hand, consumers and businesses make their own decisions on what to purchase and what to produce.
Self-check!
Try This!
Scan
video clips, the Internet, newspapers, or other media
for articles about mixed and market economies. For example, look for news stories about government involvement in the economy, labour strikes, or economic rules and regulations.Hand
in what you have found to your teacher so that he or she can mark it as
complete (if it is from a newspaper or other print source). If it is an
online article, print it off or send your teacher the link. If it is
online media such as a video (e.g., YouTube), send your teacher the link.