3 Economic Questions…What to Produce?– Businesses decide and government approves/denies itHow to produce it?– Businesses decide & government regulates proceduresFor whom to produce?– Businesses decide based on supply & demand (price)Which economic system does Canada have?…
Canada’s Economic SystemCanada has a Mixed economic system– It’s actually pretty close to a Market economy; however, there is some government regulation among industries– It does have Free Enterprise…Canada is economically strong!
Canada’s Foreign Exchange RateThe price of 1 country’s currency comparedto another…– 1 US dollar = .99 Canadian dollars– 1 US dollar = .77 EU euros– 1 Canadian dollar = .78 EU eurosWhat does this mean?– The currencies of the US and Canada are very close in value; however, the economy of the European Union is stronger than both since the euro is more valuable than both dollars!
Canada’s Land UseWhat percentage of the land is arable(capable of being farmed)?– 5% (only in Southern Canada; Northern Canada’s terrain is permafrost!)What are the major agricultural products?– Wheat, barley, oilseed, tobacco, fruits, vegetables, dairy products, forest products, fish
Canada’s IndustriesWhat’s being produced in the factories?– Transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum, natural gas
Canada’s ImportsChief imports:– Machinery & equipment, motor vehicles & parts, crude oil, chemicals, electricity consumer goodsImports total (2011): $460.7 billionTop importing partners: US (49.5%),China (10.8%), Mexico (5.5%)
Which country is Canada’s biggest trading partner?
Canada’s Literacy RateWhat percentage of people over theage of 15 can read and write?– 99%How long are students required to stayin school?– 17 years
Canada’s Unemployment RateWhat percentage of people do not havejobs?– 7.5%What percentage of people live inpoverty?– 9.4%
Canada’s GDP$1.395 trillion (2011)GDP Per Capita--What is the value ofgoods and services produced perperson?– $40,500 (2011)
4 Factors That Effect Canada’s GDPHuman Capital: Canada is investing ineducation & training (check out literacyrate!)Capital Goods: Canada is investing innew technology & building new factoriesAbundant Natural ResourcesEntrepreneurship
North American Free Trade AgreementSigned by the US, Canada, & Mexico in themid-1990sEliminated trade barriers between the 3countriesFree Trade between the 3 countriesHow has it affected Canada’s economy?– It eliminated trade barriers with US & Mexico, and allows them to trade more freely at a better cost
Canada’s Economic Problems Unemployment & poverty Over depletion of natural resources Acid rain from factories near Great Lakes region Improving public services (which forces the country to raise taxes)