Economics 12 - Role of Government

PRESCRIBED LEARNING OUTCOMES

It is expected that students will:

• outline and give examples of the various policies that a government can use to influence its economy
• describe factors that can influence government policy decisions
• outline the economic philosophies and factors behind government decision making
• evaluate the methods governments use to collect revenue and the impact of these methods on society and business
• formulate hypotheses on the relationship of the national debt to the level of economic activity
• describe the effect of federal and provincial transfer payments on the levels of economic activity and employment
• explain the role of government in producing goods, delivering services, and regulating the economic endeavours of business
• compare economic options and the opportunity costs involved in each for private or public projects

SUGGESTED INSTRUCTIONAL STRATEGIES

• Form groups of students, each representing one of the 10 provinces or the federal government. Have each provincial group research its province's economic status and past transfer payments. Ask each to propose policies for the equitable redistribution of income within its province and to defend its requirements for transfer payments. Have the federal group arbitrate on the basis of national considerations.
• Ask students to form two parliamentary committees with the objective of ending the current deficit or creating more employment. With Committee A using fiscal policy only and Committee B using monetary policy only, have them formulate and present recommendations to the BC or federal Minister of Finance.
• Ask the class to compare individual and government debt, savings, collateral, income, net assets, ability to pay, and amortization periods. Have students examine issues such as why government debt can be perpetual and who pays for the deficit.
• Have students examine the various ways in which governments collect revenue (e.g., through taxes, tariffs, licences, user fees, surcharges, insurance, duties). Ask them to discuss the fairness and efficiency of each, research what other countries have done, and develop alternatives.
• Ask each student to choose a local infrastructure project (e.g., bridge, sports facility) and interview a person in a position of authority involved in the project (regulating body, government). Have each student compare the capital, social, political, environmental, and human resource costs to determine the advantages and disadvantages of building it as a private or public project. Have students present their analyses, using graphics where appropriate.

SUGGESTED ASSESSMENT STRATEGIES

• Use assignments such as the following to provide insight into students' understanding of the impact of government intervention:
  • Students research and analyse a freeze imposed by the Canadian or BC government (e.g., rent, car insurance rates, hiring, wages, utility rates), including its impact on the private sector.
  • Students examine the impact of the decision by a Crown corporation to intervene in a sector of the economy (e.g., BC Ferry Corporation subsidizing the province's shipbuilding sector). Considerations might include job creation, preservation of the sector, increase in the use of technology, and design skills available for export. In assessing their assignments, look for evidence that students are able to:
  • identify the economic philosophies involved
  • provide thorough and logical analyses of the impact on the private sector
  • consider both short-term and long-term implications
• Have students present analyses of the effects and implications of specific government environmental regulations (e.g., BC minimum toxicity levels for fish are different from other jurisdictions). Look for accuracy, thoroughness, logic, and insight in their work.
• Ask students to research, analyse, and report on the impact of government-run lotteries over a 10-year period. Reports should include:
  • effective use of government publications and databases
  • graphs that accurately plot the number of lotteries and the dollar amounts generated over time
  • analyses of social implications and revenue dependency

• The Canadian Economy
• Economics for Today: Issues and Applications
• The Economics Scrapbook
• Made in Canada: Economics for Canadians, Third Edition
• Working With Economics, Fourth Edition

• Country Canada: Good Grapes
• Real World Economics: Getting the Right Mix
• Real World Economics: Trading Nations
• Venture: Omnibus
• W5: Farmer Buck
• W5: Iceland
• W5: Underground Economy

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