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Canada’s Economy. Economy Review. What do you know about… Traditional Economy? Command Economy? Market Economy? Mixed Economy?. Review Types of Economies. Which type of economy lets businesses do whatever they want? Which economy has the government making all the decisions? - PowerPoint PPT Presentation

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  • Canadas Economy

  • Economy ReviewWhat do you know aboutTraditional Economy?Command Economy?Market Economy? Mixed Economy?

  • Review Types of EconomiesWhich type of economy lets businesses do whatever they want?Which economy has the government making all the decisions?Which economy do most countries have?

  • Most countries lie somewhere in between a Command and a Markey Economy-However, they may be closer to one side than the other

  • 3 Economic QuestionsWhat 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?

  • Canadas Economic SystemCanada has a Mixed economic systemIts actually pretty close to a Market economy; however, there is some government regulation among industriesIt does have Free Enterprise (competition between businesses)

    Canada is economically strong!

  • Mixed EconomyCanada is a mixed economy, but it is closer to market than command

  • Canadas Foreign Exchange RateThe price of 1 countrys currency compared to another1 US dollar = 1.01 Canadian dollars1 US dollar = .75 EU euros1 Canadian dollar = .7501 EU eurosWhat does this mean?The US economy is a little stronger than Canadas; however, the economy of the European Union is stronger than both!

  • Canadas Natural ResourcesWhats available?Minerals like: iron ore, nickel, zinc, copper, gold, lead, molybdenum, potash, diamonds, and silver, Fish, timber, wildlife, coal, petroleum, natural gas, hydroelectric power

  • Canadas Land UseWhat percentage of the land is arable (capable of being farmed)?5% (only in Southern Canada; Northern Canadas terrain is permafrost!)This is actually a large amount, considering Canada is the worlds 2nd largest country

    What are the major agricultural products?Wheat, barley, oilseed, tobacco, fruits, vegetables, dairy products, forest products, fish

  • Canadas IndustriesWhats 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 Canadas biggest trading partner?Exports: US 77.7%, UK 2.7%, Japan 2.3%Imports: US 52.4%, China 9.8%, Mexico 4.1%

  • Canadas Literacy RateWhat percentage of people over the age of 15 can read and write?99%

    How long are students required to stay in school?17 years

  • Canadas Unemployment RateWhat percentage of people do not have jobs?8.3%

    What percentage of people live in poverty?10.8%

  • Canadas GDP What is 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)

  • What is GDP?All of the goods/services a country produces in one year

  • Canadas ExportsWhat is an export?Main exports are hydroelectricity, fish, timber & agricultural products

  • 4 Factors That Effect Canadas GDPHuman Capital: Canada is investing in education & training (check out literacy rate!)Capital Goods: Canada is investing in new technology & building new factoriesAbundant Natural ResourcesFocus on Entrepreneurship

  • What are capital goods?All of the materials (factories, machines, technologies, buildings, and property) needed by businesses to operate

  • North American Free Trade AgreementNAFTASigned by the US, Canada, & Mexico in the mid-1990sEliminated trade barriers between the 3 countriesFree Trade between the 3 countriesHow has it affected Canadas economy?It eliminated trade barriers with US & Mexico, and allows them to trade more freely at a better cost

  • Canadas Economic ProblemsUnemployment & povertyOver-depletion of natural resourcesAcid rain from factories near Great Lakes region is destroying timber resourcesImproving public services (which forces the country to raise taxes)