Transcript File - Social Studies 10

Canada’s
Economy
What factors influence a country?
 What does economy mean?
• A more simple definition is meeting the basic needs and
desires of individuals, businesses, and nations
• Often you can’t meet all the needs. This is called scarcity.
For example. You want a new computer game, but you owe
your friend money. You can’t do both.
•
Now imagine you have billions of dollars to spend but many needs of
different people? How do you satisfy everyone?
•
Try on the Prime Ministers hat and try to balance Canada’s books with the
goal to make everyone happy.
FEDERAL BUDGET
SIMULATION
 Go to this website http://www.econedlink.org/nationalbudget-simulator.php
 You have 5 minutes.
 ….. Go
Post Game Thoughts?
 How will the program cuts that you made affect specific
groups (the elderly, students, environmentalists, savers, the
poor, foreign aid recipients, producers, etc.)?
 What programs did you choose to cut? Why did you choose
those programs over others?
 Would other cuts have had less impact on people’s lives?
Which budget cuts had the largest impact on reducing the
deficit?
 Which decisions might be perceived as politically motivated?
 If you had the opportunity to raise taxes rather than cut
programs, which policy would you choose?
What kind of Economy
does Canada Have?
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
How do we measure
our Economy?
GDP VS GNP
 Gross Domestic Product- measures the market value of
goods and services produced in a country during a set
period of time. (In Canada only)
 Gross National Product- measures the market value of
goods and services produced by a nation’s companies
(In Canada and outside Canada)
 These measurements tell us how strong our Country is.
(how much money we are making and products we are
selling)
How does an Economy
work/run?
Supply and Demand
The laws of supply:
 reflects the producer side of the market and state:
 as prices drop so does supply (as producers increase production);
 and as prices decline, so does supply (as producers reduce production).
The laws of demand:
 reflects the consumer side of the market and state:
 as prices rise, demand goes down;
 and as prices fall, demand increases
Examples of Supply & Demand
By controlling supply, producers hope to maximize profits and control prices.
If demand is steady, then reducing supply will raise prices and increasing
supply will lower them.
eg. OPEC – oil
The law of demand applies to the consumer side of the market.
 When prices are reduced, demand increases.
eg. Clothing sale
The law of Supply applies to the Supplier side of the market.
 demand increases, prices rise.
eg. Clothing at the start of a season.
Suppliers and sellers want as
high a price as possible so
they can make more money.
 Canucks tickets a season are $1000 and they want to
sell 100
 but if they are $2000 they want to sell 200
 and if they are $3000 they want to sell 300.
How many do Chelsea want to
sell?
Price per
season ticket
Quantity Canucks want
to sell
$1000
1000
$2000
2000
$3000
3000
Can you plot this on a graph?
The Supply curve slopes upwards
the higher the price the higher the
quantity supplied
Price
$3000
$2000
$1000
Quantity
1000
2000
3000
Demand
 Nawaf has a market stall selling strawberries for $2 a
bowl
 He sells 10 bowls per hour
 But at lunch time he realises that he is not selling very
many so what could he do?
 Decrease the price to $1 to sell more
 He would probably sell about 20 bowls an hour at this
price
 What if he thought he was selling out of strawberries too
quickly – what could he do?
 If he increased his price to $3 he might sell only 5 bowls
How many does he sell per hour?
Price per
bowl
Quantity
sold per
hour
$1
20
$2
$3
10
5
Can you plot this on a graph?
The demand curve slopes downwards
the higher the price the lower the
quantity demanded
Price
$3
$2
$1
Quantity
5
10
20
The quantity demanded and the
quantity supplied determine the price
of the items in a market
Price
Price
Equilibrium
Quantity
Quantity
Economic Decisions
 So you’re starting a business? What 3 basic questions
should you ask yourself about your business before
you begin?
 What is my product?
 How will I make or produce my product?
 Who will I sell my product to?
Canada’s Economic
Activities
4 sectors
Can you think of an example for each?
How we categorize our economic industries
extracting
resources
Primary
Industries
Logging
processing /
manufacturing of goods
Secondary
Industries
Construction
retail/sales
research
Tertiary
Industries
Quaternary
Industries
Real Estate
Economist
Primary Industries
-industries that harvest
natural resources
(natural resources: air,
soil, water, oil, plants,
rocks, minerals,
wildlife)
Examples of Industries: mining, forestry, oil and
gas, agriculture, fishing, hunting, trapping
Labour
- Lower number of people
employed than other
industry levels due to
mechanization of the job
(one person per big
machine)
-Skilled labour due to the
specialization of the job
(college diploma and
apprenticeship)
Secondary Refining Industries
- process raw
materials into
industrial products
Industries: Steel mills,
paper mills, textile mills,
plastic manufacturers,
flour mill
Labour
- Larger number of people
employed than primary
industry but still lower than
manufacturing industry
-Some college skilled
labour (steel milling),
Often industry trained
labour
Secondary Manufacturing
Industry
-process industrial
products into goods
Industries: car makers,
garment industry,
furniture makers,
industrial bakers
Labour
- Larger number of people
in a factory
-Often industry trained
labour, low skill labour
Tertiary Industry
-provide services and
distribution of final
products to the market
Industries: retail sales,
utilities, public
administration,
communications,
health care,
restaurants, education
Labour
-Large number of people
employed in this industry
-Labour skill varies:
Low skill labour (ex
cashier),
college trained (ex. chef,
paramedic),
University trained (ex.
accountant, pharmacist)
Quaternary Industry
-provides intellectual
services
Industries: Scientific
research,
information
technology,
consultants,
Labour
-Small of people employed
in this industry
-Very highly trained
employees (many years of
university)
Basic and Non-Basic
Industries
Basic Industries
• Industries that sell their products outside the
community, bringing “new” money into the community
Non-Basic Industries
• Industries that sell their products within the community,
not bringing “new” money into the community
Decide if the description is an example of either a basic or non-basic
industry:
Job Description
Coal miner in northeastern British Columbia
Basic/Non-Basic
Basic
Hairdresser at a shopping mall
Non- basic
Art teacher
Non- basic
Actor at the Stratford Shakespearean Festival
Teller at the local bank
Vice-president of Scotiabank
Professor at Queen’s University
Basic
Non- basic
Basic
Receptionist at a dentist’s office
Basic
Non- basic
Air Canada pilot
Basic
School-bus driver
Non- basic
Lesson 2
Economic Regions
Canada’s Economic Regions
 An economic region is defined by common economic
activities in one area
 Defined on the basis of the dominant industrial activities in
the area
 Canada’s economy reflects diversity and size of the country
 There are five economic regions in Canada
 Canada’s smallest region is the Great Lakes/ St. Lawrence,
the largest region is the Canadian Shield
 If Canada’s economy is to thrive it has to diversify in the 21st
century to compete with other countries
Canada’s Economic
Regions
 Canada can be divided into a number of districts based on
the distribution and utilization of resources. Other types of
data that provide a basis for economic distribution include
natural regions, administrative and political units, and
resource distribution and use. For a number of reasons,
these regions resemble both Canada’s natural regions
studied in Chapter 3, and its political units (provinces).
 These five regions include: Atlantic, Great Lakes- St.
Lawrence Lowlands, the Shield, the North, the Prairies, and
BC.
 Each regions economic character is examined including:
resource base, history, economic development, and current
trends and issues.
ACTIVITY
 Take the notes in front of you and match them with the
correct regions. Use your textbook and Atlas to help
you find out the correct information.
Lesson 3
Economics
Urban Attractions
 What attracts people to Vancouver over Langley?
Vancouver or Whitehorse?
Unemployment
What is unemployment?
 The number of people willing and able to work but
unable to find employment
 Canada’s Unemployment Rate
Causes of unemployment
1. Cyclical unemployment

general unemployment that occurs across many industries due to an economic downturn or
recession. It is linked with periods of negative GDP growth in the business cycle. (AUTO
INDUSTRY)
2. Seasonal unemployment
Must follow the nature of the job (Daffodil or Berry Pickers).
3. Frictional unemployment

occurs when people take some time to find another job after losing or leaving their previous
one (TEACHERS)
4. Structural unemployment

The closing of an industry or permanent decline in an economic sector (FISHING INDUSTRY)
Globalization
 is the process of international integration arising
from the interchange of world views, products, ideas,
and other aspects of culture
Globalization
 Globalisation effects on life are profound for the rich
and the poor countries alike. Countries can boom to
bust (or vice versa) in a generation. Eg: Detroit
 Globalisation some say is responsible for:
 Lower wages for workers and higher profits in western
economies
 Flood of immigrants to cities in poor countries
 Low inflation and low interest rates despite
strong growth

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%
Lesson 4
Canada in North America
Canada’s Economy
1960-1970
Branch plant Economy
 Britain used to lend money to Canada and Canadian
businesses to help them start up. (then canada would
trade with Britain). But after WWI and WWII Britain
could not afford to do this anymore.
 Then the USA came in and began buying the Canadian
businesses who could no longer afford to keep running.
So now many businesses in Canada were neither
owned or controlled by Canadians (even though they
were in Canada)
Canada’s Economy
1960-1970
 Also, USA now didn’t have to pay taxes because the
businesses were in Canada and not the United States.
So America thought this was great and kept starting up
their businesses in Canada instead of in their own
country.
Canada-US Auto Pact
 The auto pact was an example of a sectoral free trade
agreement between Canada and the USA.
 Canada’s car manufacturing industry was not making
money because the cost of making cars was too high.
 American company FORD agreed to make one car in
Canada for every Car bought in Canada.
Economic Crisis
 In 2008-2009 when America had its economic crisis
and car companies Ford and GM began to fall. This
meant that it affected Canadian economy because so
many Canadians were employed and tied to American
companies.
The Business Cycle:

“Prosperity:” loans are made easily, per capita GDP
increases, and the supply of goods and services
comes to exceed demand. This in turn leads to layoffs.

“Slowdown:” the layoffs lead to reduced consumer
purchasing, so stocks of goods and services remain
above demand, and further layoff result. Fewer loans
are made.

“Recession:” the cycle of layoffs ends with many
workers laid off. As a result demand is at its lowest,
per capita GDP is reduced and loans tend not to be
made.

“Recovery:” stocks of goods are reduced, and
producers need to increase production to meet rising
demand. This leads to rehiring workers, which leads to
more demand, and so on. Banks make more loans
and more good may be produced.

The Business Cycle: Slowdown Recession 
Recovery  Prosperity
Slowdown
Prosperity
Recession
Recovery
If our country is making selling products, making money and employing
people then we are in “prosperity”
If we are not selling products, losing money or have unemployment, then
we could be in one of the other 3 areas )
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
 Read page 317. What did Canadians think of this trade
agreement? On Question 4
 What do you think of NAFTA? Explain why you think
that on question 5.
References