Grade 9 · Social Studies · Unit 4 of 6
Economic Systems
Traditional, command, market and mixed
What your child practises
The four kinds of economic system, how scarcity forces choices, the factors of production, profit, and how Canada and the United States blend private business with government roles.
Alberta Curriculum learning outcome: 9.2 · traditional, command, market and mixed economic systems, scarcity, opportunity cost and profit
Sample questions
A taste of this unit. In the app, questions change every time and get easier or harder to match your child.
Question 1
In Alberta there is no provincial sales tax. Only 5% GST applies. How much GST is added to a $20 item, in dollars?
answer box
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1
Hint: 5% of 20 is 20 ÷ 20 = $1.
Question 2
Which is a strength of a market economy?
- It removes all competition
- People have many choices and businesses are encouraged to innovate
- It needs no rules
- It guarantees equal incomes
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People have many choices and businesses are encouraged to innovate
Hint: A market system also has weaknesses, such as unequal incomes and businesses that may harm the environment, which is why governments set rules.
Question 3
Why is it hard to compare two economies fairly?
- Economies are all identical
- Countries do not trade
- Each has different resources, history, population and values
- Only taxes matter
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Each has different resources, history, population and values
Hint: Looking at several measures, such as incomes, jobs and well-being, gives a more complete picture.
Question 4
Why do governments regulate businesses in a mixed economy?
- To protect consumers, workers and the environment
- To stop all profit
- To end competition
- To make every product the same
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To protect consumers, workers and the environment
Hint: Rules about safety, labour and pollution help balance the interests of business with the public good.
Question 5
The Alberta Heritage Savings Trust Fund was created in 1976. What is its purpose?
- to save part of the money from non-renewable resource revenues for the future
- to set interest rates
- to buy the Prairies
- to pay for municipal elections
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to save part of the money from non-renewable resource revenues for the future
Hint: The idea is that because oil and gas are non-renewable, some of the income should be saved.
Question 6
A government provides public schools and roads that everyone can use, paid for by taxes. What does this show about a mixed economy?
- Taxes do not exist
- Roads are private property
- The government owns every business
- The government provides some goods and services itself
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The government provides some goods and services itself
Hint: Mixed economies use taxes to pay for services that benefit everyone.