1. Productive Resources Canadian Economy 2203

2. 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

3. 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.

4. 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

5. 3 Basic Economic Questions What will be produced? How will it be produced? For whom will it be produced?

6. 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

7. 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

8. 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

9. 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

10. 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:

11. 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)

12. 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)