Section 1 Introduction
Unit 4: Section 1: Market and Mixed Economies
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Section 1 Introduction
In Unit 1, you were introduced to the following question: How does economics affect my daily life?
You began your investigation by examining how you and your family spend money. You may have identified some of the goods you purchase such as food, school supplies, and clothes. Many goods are available in the marketplace at any time.
You likely also identified the services you use, such as taking the bus or getting a haircut. Many services are provided to consumers. Some of these services are public services owned and operated by the government. Public services include education, health care, and transportation. Other services are privately owned and operated by individuals or corporations, such as the grocery store, the travel agency, or the dentist's office.
The goods and services you identified in Unit 1 are those that you believed best influence or support your quality of life. But more specifically, these were the goods and services that you desired as needs and wants.
A need is something necessary for survival, such as food. If you don't eat, you won't survive. A want is something you would like to have. A want provides you with satisfaction, such as entertainment-music, movies, or video games. These are wants because you can survive without them.
Everyone has needs and wants. What are your individual needs and wants? How do these relate to the goods and services you identified as important in Unit 1?
Which of these items are needs and which of them are wants?
Organize your items into a list of needs and wants and save your list to your Activities folder.
Economies are established to supply the goods and services that satisfy society's needs and wants. Various businesses and government departments provide the goods and services.
Industries are required in the development of goods and services. The industries are organized into four categories:
- primary industry
- secondary industry
- tertiary industry
- quaternary industry
Primary Industries
The goods you may need and want are resources. At the primary stage, the resources are raw materials from land or water.
Primary industry includes industry such as mining, forestry, farming, and fishing. Approximately 10% of Canadians work in primary industries.
Secondary Industries
A secondary industry is the industry in which raw materials are turned into finished goods. These are the manufacturing, processing, and constructing industries, which include metal working, automobile and textile production, chemical and engineering industries, and energy utilities. Approximately 10 to 15% of Canadians work in these industries.
Tertiary Industries
A tertiary industry is a service industry in which goods or services are distributed or sold to the consumer. Tertiary industries include industries such as retail and
wholesale, transportation and distribution, entertainment, and restaurants. Approximately 60 to 70% of Canadians work in these industries.
Quaternary Industries
Quaternary industries focus on research and development.
These provide, create, and improve primary, secondary, and tertiary industries. Included in quaternary industries are activities such as scientific and medical research, education, information technology, and corporate headquarters. Approximately 5 to
20% of Canadians work in these industries.
Now, retrieve your Issues for Canadians Definitions handout from your Activities folder.
Add the terms primary industry, secondary industry, tertiary industry, and quaternary industry, and write a definition for each word. Provide examples to help you remember the definitions.
Save your updated handout to your Activities folder.
These industries work together and support the economy. Economics is the study of the distribution of resources, the production of resources, and the consumption of resources to produce the goods and services that satisfy consumers' unlimited needs and wants. Economic decision-making affects your quality of life, citizenship, and identity.
In this section, you will examine this question:
How do the economic systems of Canada and the United States work?
You will complete the following:
- Section 1 Inquiry
- activities
- assignments
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