Government & Economics 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 Prime Minster Stephen Harper

What do they do? Key Figures Chief of State Monarch 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

Review . . . Types of Economies 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 enterprise Capitalism 2) Command economy An economic system in which the government owns and operates the factors of production. Socialism Communism Cuba China 3) Traditional economy An economic system based upon customs and traditions. Economy is based upon agriculture and hunting. Non-Industrialized Agrarian societies Haiti Australian Aborigines 4) Mixed economy An economic system that has features of both market and command economies. United States Great Britain Japan

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.

NAFTA (North American Free Trade Agreement) 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

Specialization & Opportunity Cost 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

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