Canadian Economy 2203 Productive Resources What are productive

Canadian Economy 2203 Productive Resources

What are productive resources? • Anything that can be used to create or manufacture valuable goods or services. • Also known as factors of production • Different types: natural, human, capital

Necessary for production? • Natural Resources – minerals, land, groundwater, fossil fuels, forest reserves. These raw materials needed to produce goods and services. • Human Resources – people who work, refers to physical labour, as well as mental effort. Effective workers are important for production. • Capital Resources – goods that aid in the production of other goods and services, such as factories, warehouses, equipment, etc.

Economic Systems • An economic system is the set of laws, institutions, and common practices that help a nation determine how to use its scarce resources to satisfy as many of its people’s needs and wants as possible. • 4 different approaches over time: • • Tradition Command Market Mixed

3 Basic Economic Questions • What will be produced? • How will it be produced? • For whom will it be produced?

Traditional Economy • Ways of producing goods/services are passed down through generations • Often used in rural/farm-based countries • Mostly non-existent anymore in our society • Economic questions: • Production includes all basic needs: food, clothing, etc. • Produced for families/community • Produced by families/community

Command • Decisions made (regarding production and investment) by a public body, usually a government agency. • Economic planning to improve productivity and coordination • Rewards for people who contribute to the betterment of the state • Economic questions: • Answered by central government

Market • Economic activity is based on supply and demand. • People are acting out of self-interest • Prices are determined by a free price system • Quest for profit • Economic questions: • Decisions on what to produce made by individuals and firms (supply/demand) • Produced by both public and private • Produced for consumers

Mixed • Both the private sector and the state direct the economy • Characteristics of planned economies and market economies • Strong regulatory oversight with government provision of public goods • Economic questions: • Supply/Demand • Private/Public • Consumers

Assignment • Research 1 country in the world • Answer the following questions: • What type of government do they have? • How do they answer the 3 main economic questions? • What will be produced? • How will it be produced? • For whom will it be produced? • Plus the following:

• The main industries and percent of and value of GNP produced by each; • The per capita or average income of each country; • The number of people employed and unemployed in the country; • The main natural resources and their value; • The currency of each country and its exchange rate with Canada • The main exports and imports of the country and their main trading partners • The per capita GNP (Gross National Product)

Activity! • Think about a pizza place in town. • Identify all the resources used in the production of the pizza. • Make a list of these resources using the following headings: • Renewable/non-renewable resources (land/natural) • Mental and physical resources (human/labour) • Capital resources (fixed and working capital)