What do you like on a Sundae? What toppings do you like on an ice cream sundae? – Plain Vanilla? – Or absolutely everything (and I mean everything)? OR…
What do you like on a Sundae?Chances are, you were somewhere betweenplain and everything. – When discussing economies, most countries are somewhere in between too.When a country is not completely acommand economy and not completely amarket economy, but somewhere inbetween, it is called a Mixed Economy.
Most countries lie somewhere in between -However, they may be closer to one side than the other
Review Types of Economies1. Which type of economy lets businesses do whatever they want?2. Which economy has the government making all the decisions?3. Which economy do most countries have?
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 (competition between businesses)Canada is economically strong!
Mixed EconomyCanada is a mixed economy, but it is closer tomarket than command
Canada’s Foreign Exchange RateThe price of 1 country’s currency compared toanother…– 1 US dollar = 1.01 Canadian dollars– 1 US dollar = .75 EU euros– 1 Canadian dollar = .7501 EU eurosWhat does this mean?– The US economy is a little stronger than Canada’s; however, the economy of the European Union is stronger than both!
Canada’s Natural ResourcesWhat’s available?– Minerals like: iron ore, nickel, zinc, copper, gold, lead, molybdenum, potash, diamonds, and silver,– fish, timber, wildlife, coal, petroleum, natural gas, hydroelectric power
Canada’s Land UseWhat percentage of the land is arable (capableof being farmed)?– 5% (only in Southern Canada; Northern Canada’s terrain is permafrost!)– This is actually a large amount, considering Canada is the world’s 2nd largest countryWhat 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
Which country is Canada’s biggest trading partner?Expor t s: US 77. 7% UK 2. 7% Japan 2. 3% , ,Impor t s: US 52. 4% Chi na 9. 8% M , , exi co 4. 1%
Canada’s Literacy RateWhat percentage of people over the ageof 15 can read and write?– 99%How long are students required to stay inschool?– 17 years
Canada’s Unemployment RateWhat percentage of people do not havejobs?– 8.3%What percentage of people live inpoverty?– 10.8%
Canada’s GDP$1.336 trillion (2009)– 15th in the worldGDP Per Capita--What is the value ofgoods and services produced per person?– $38,100 (2009)
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 the mid-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 ProblemsUnemployment & povertyOver-depletion of natural resourcesAcid rain from factories near Great Lakesregion is destroying timber resourcesImproving public services (which forces thecountry to raise taxes)