The Canadian Economy ALLPPT com Free Power Point

The Canadian Economy ALLPPT. com _ Free Power. Point Templates, Diagrams and Charts

Standard SS 6 E 4 c - Describe the economic system of Canada

What All National Economies Face • Canada has more land that any nation on Earth except Russia, and it enjoys vast natural resources. • But even with those advantages, Canada cannot produce every good and service that its citizens want. • For example, Canada is a major importer of computers and food products. • The country does not make enough of these products to meet the needs of its citizens. • This gives an example of how Canada has answered three key questions: 1. What to produce? 2. How to produce? 3. For whom to produce?

What All National Economies Face • Like other countries, the way it answers those questions determined Canada’s economic system. • The country had to choose from among three basic types of economic systems: 1. traditional • • 2. command 3. market However, few countries decide it is practical to have either a “pure command” or “pure market” economy. Instead, Canada and other countries choose a mixed economy. Their economy is not run entirely by government commands. nor does it side with free market forces 100% of the time. It is somewhere in between.

Let’s Review Identify each as a feature of a market economy or a command economy. 1. A major paper-making corporation buys up many acres of Canada’s pine forests. 2. The Canadian Ministry of National Resources decides how much hydropower to produce each year. 3. Canadians pay higher taxes, so they can receive free healthcare through the government. 4. Canadians pay lower taxes but also have to buy health insurance from a private company.

Canada’s Approach • Canada has a mixed economy that is about 79% free and 21% command. • That makes it the seventh-freest economy in the world and very close to a pure market economy. • As in its neighbor, the United States, the Canadian economy emphasizes technology and industry, and moves in response to market forces. • The standard of living is high. Standard of living refers to the level of wealth, comfort, material goods, and necessities

Canada’s Economic System • In Canada , businesses make most of the key decisions about what to produce based on market place supply and demand forces. • The national government plays a limited role in the economy and gives citizens and businesses a lot of economic freedom. • While the government regulates trade and industries, the regulations are not difficult to comply with. • However, the national government has been growing and expanding various services… So taxes have been going up. • Also, nearly 90% of Canada's land is state-owned, although private property rights for the other 10% are well protected under Canadian law.

Let’s Review Pure Market Pure Command Identify where the economy of Canada lies on the continuum.

GDP in Canada • One area that the Canadian government has decided not to entirely leave up to private business is healthcare. • Different layers of government pay through taxes to cover most of the cost of healthcare for their citizens. • People go to the private doctor of their choice, and most services are free. • To compare, in the United States many citizens buy health insurance from a private company, which pays for care from approved doctors.

GDP in Canada • The single-most important way that the strength of a country’s economy is measured is gross domestic product, or GDP. • That means how much all the goods and services produced by that country’s economy in a year are worth. • GDP per capita, or person, helps point to the standard of living in that country. • See in the chart how GDP per capita stacks up in Canada compared with some other developed countries. GDP per Capita (2015) United States $56, 800 Germany $47, 600 Canada $46, 200 France $42, 000

Let’s Review Choose the correct answer based on your reading and the GDP per capita chart 1. Gross domestic product measures the strength of the: a. economy b. educational system 2. GDP per capita shows how much gross domestic product each _____ produced in a year. a. business b. person 3. The average Canadian’s productivity is closest to that of in: a. France b. Germany

Bibliography • • © Carole Marsh/Gallopade International http: //www. georgiaexperience. com ISBN 978 -0 -635 -12575 -0 Student Workbook Pages 143 -145