CANADA

Government &

Economics

Parliament vs. President

• Parliamentary– Legislature controls the power

– Parliament

– Prime Minister• Head of government• Chosen by majority party

in the legislature• Stays in office for a

designated period unless their party loses the majority

• Fusion of powers

• Presidential– Executive and Legislative

branches are separate• Separation of powers

– Checks and Balances between 3 branches

– President is elected by the voters after a specific amount of time

Canadian Government• Canada’s capital is Ottawa

• Government can be described several ways:• Constitutional monarchy

– They have a written constitution that outlines the rights of citizens and how the government is organized.

• Federal government (Federation)– They have both national and provincial governments that share political

powers (division of political powers)

» Federal government responsible for national defense, trading, banking, immigration, criminal law and postal services.

» Provincial governments responsible for education, property rights, local government, hospitals and provincial taxes.

• Parliamentary democracy– They have a democratic government with a two house legislature called

Parliament– Parliament can be dissolved by the Prime Minister and new elections

held, if the government isn’t working well.

Who’s in Charge?

Prime Minster Stephen Harper

Chief of State

Queen Elizabeth II

Governor General

David Johnston

What do they do? • Legislative Branch

– Parliament . . . Controls the power– Makes the laws

• Executive Branch– Prime Minister . . . Leader of

majority party in Parliament• Stays in power as long as his

party hold the majority in Parliament

• If party loses power, Prime Minister must resign and new elections are held

– Enforces the laws

• Judicial Branch– Interprets the laws

Key Figures– Chief of State

• Monarch

– Head of Government (chief executive)

• Prime Minister

– Governor-General• Appointed by the

Monarch• 5 year term

Role of the Citizen• Right to vote – 18 years old

– Several political parties to choose from.– Elect representatives to the provincial parliaments

• Bloc Quebecois, Conservative Party of Canada, Green Party, Liberal Party, New Democratic Party

• Personal Rights and Freedoms– Freedom of Speech, Religion & Press– Right to a fair trial– Equal rights

CANADIAN ECONOMICS

TYPES OF ECONOMIC SYSTEMS

Definition Associated Terms Examples in Practice

1) Market economy An economic system in which individuals own and operate the factors of production.

Free enterpriseCapitalism

2) Command economy An economic system in which the government owns and operates the factors of production.

SocialismCommunism

CubaChina

3) Traditional economy An economic system based upon customs and traditions. Economy is based upon agriculture and hunting.

Non-IndustrializedAgrarian societies

HaitiAustralian Aborigines

4) Mixed economy An economic system that has features of both market and command economies.

United StatesGreat Britain

Japan

Review . . . Types of Economies

Canada’s Economy• Canada has a mixed market economy

– Dominated by the service industry– Large manufacturing and mining industries

• Has transformed from a rural economy to a more urban & industrial economy

– Government controlled health care and postal services

• Canada benefits greatly from trade– Timber and oil are traded internationally

– Canada’s largest trading partner is the U.S.• 82% of their exports go to the U.S., and 55% of their imports come from the

U.S.

• Canada’s reliance on exports to the U.S. makes it interdependent, meaning it needs another country for economic success.

• 3 countries involved– USA, Mexico, Canada– Has greatly increased Canada’s economic growth –

eliminated trade barriers

• Purpose– Increase trade between member nations by creating

a large free-trade zone (remove trade barriers)• Remove tariffs, quotas, embargo

• Key Functions – between member nations– Eliminate tariffs on goods shipped– Remove restrictions on investment– Remove custom barriers at border crossings

(make it easier for trucks to pass into Mexico)

– Establish tough standards for environmental, health and safety regulations in industries

– Improve working conditions

NAFTA (North American Free Trade Agreement)

• Specialization– Focus on producing one or

two goods really well

– Advantages• Produce goods in less

time• Produce goods for less

money

• Opportunity Cost– Value of what is given up

when a choice is made

• Example of Opportunity Cost– Received $50 for your birthday

• Spend on video games• Save for future purchases

– Decided to save money for future purchase

– Opportunity Cost = the value of the video game you didn’t purchase

• We make decisions all the time.

– Ride the bus or walk to school

– Ice cream or extra pizza

Specialization & Opportunity Cost

• How does a country raise its GDP?– Invest in human capital

• Education and skills training• Smarter people leads to a more productive workforce

» Increase economic growth.

• Literacy rate is used to determine the educational level of people . . .

» Higher the literacy rate. . . Higher the GDP

• Canada uses tax money to provide free health care and a free college education to all Canadians!

– Invest in capital resources• Provides workers with the most current and updated tools.

» New factories, computers, roads» Increases productivity and economic growth

– Canada’s GDP• $1.319 trillion (15th in the world)

• What role do entrepreneurs play in the success of a country’s economy?– Generate new ideas– Invest in human, capital and natural resources– Willing to take risks– Help countries adapt to changing trends

• How long does it take to start a business in Canada?– Average of 5 days . . . . World average is 38 days