Canada’s Economy
SS6E1, SS6E5, SS6E8 The student will analyze different economic systems
a. Compare how traditional, command, and market economies answer
the economic questions of 1 – what to produce, 2 – how to produce,
and 3 – for whom to produce
b. Explain how most countries have a mixed economy located on a
continuum between pure market and pure command
SS6E2 The student will give examples of how voluntary trade benefits
buyers and sellers in Latin America and the Caribbean and Canada
c. Explain the functions of the North American Free Trade Agreement (NAFTA)
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 between
plain and everything.
– When discussing economies, most countries are
somewhere in between too.
When a country is not completely a
command economy and not completely a
market economy, but somewhere in
between, 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 Economies
1.
2.
3.
Which type of economy lets businesses do whatever they want?
Which economy has the government making all the decisions?
Which economy do most countries have?
3 Economic Questions…
What to Produce?
– Businesses decide and government approves/denies it
How to produce it?
– Businesses decide & government regulates procedures
For whom to produce?
– Businesses decide based on supply & demand (price)
Which economic system does Canada have?…
Canada’s Economic System
Canada 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 Economy
Canada is a mixed economy, but it is closer to
market than command
Canada’s Foreign Exchange
Rate
The price of 1 country’s currency compared to
another…
– 1 US dollar = 1.02 Canadian dollars
– 1 US dollar = .74 EU euros
– 1 Canadian dollar = .73 EU euros
What 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 Resources
What’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 Use
What percentage of the land is arable (capable
of 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 country
What are the major agricultural products?
– Wheat, barley, oilseed, tobacco, fruits, vegetables,
dairy products, forest products, fish
Canada’s Industries
What’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?
Exports: US 77.7%, UK 2.7%, Japan 2.3%
Imports: US 52.4%, China 9.8%, Mexico 4.1%
Canada’s Literacy Rate
What percentage of people over the age
of 15 can read and write?
– 99%
How long are students required to stay in
school?
– 17 years
Canada’s Unemployment
Rate
What percentage of people do not have
jobs?
– 8%
What percentage of people live in
poverty?
– 9.4%
Canada’s GDP
$1.336 trillion (2009)
– 15th in the world
GDP Per Capita--What is the value of
goods and services produced per person?
– $38,100 (2009)
4 Factors That Effect Canada’s
GDP
Human Capital: Canada is investing in
education & training (check out literacy
rate!)
Capital Goods: Canada is investing in
new technology & building new factories
Abundant Natural Resources
Entrepreneurship
North American Free Trade
Agreement
Signed by the US, Canada, & Mexico in the mid1990s
Eliminated trade barriers between the 3
countries
Free Trade between the 3 countries
How 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 is destroying timber resources
Improving public services (which forces the
country to raise taxes)
NAFTA Activity
Take out a piece of notebook paper.
Complete the following –
– What three countries are affected by NAFTA?
– Use the letters NAFTA to start five phrases that describe five key
functions of NAFTA
– N _______________________________
– A _______________________________
– F _______________________________
– T _______________________________
– A _______________________________
– List one advantage and one disadvantage of NAFTA.
Credits
Original presentation by A. Bennett.
Retrieved from www.Slideshare.net
December 1, 2011
Modifications by B. Morgan
CIA World Factbook
Georgia Experience Sixth Grade Blacklines,
Carole Marsh/Gallopade International,
Peachtree City, GA