Workbook 14

Activity 1: Market and Mixed Economies

Get Focused

As a Grade 9 student, you may be starting to think about what you want to do when you finish Grade 12. Will you graduate and attend trade school? Perhaps you want to go on to university. Maybe you are anxious to get a job and earn money to buy not only what you need but also what you want.

Imagine your family has decided you are now in charge of the family budget so you can start to learn about being responsible with money. A budget is a plan for how much money is spent with the amount of money that is earned. A budget ensures that you do not overspend, and it helps ensure you have enough money to satisfy your needs. The most common way to make a budget is to record your income and expenses.

Imagine that you have $4000 each month to cover the costs of all your family's bills including household expenses, food, clothing, transportation, and entertainment. You must also decide how much you will set aside for savings or an emergency fund.

In this activity, you are in charge of making economic decisions for your family. With an adult family member if possible, create a budget for the month. Write down or use a computer to record your income and expenses.

Save your budget to your Activities folder.

Click on the link for a sample budget.

The economic decisions that you make can affect your ability to provide for both your needs and wants. These economic decisions may include the type of job you have, where you live, and what you purchase each month. Your quality of life is affected by the economic decisions you make. The type of economy and the strength of the economy can also impact what economic decisions are made and how your quality of life can be maintained.

In this activity, you will examine these questions:

• What is market economy, mixed economy, and command economy?
• What are the underlying values and beliefs in market economic systems?