Canadian Economic Problems

985 Words4 Pages
To meet the needs of Canadian people, three fundamental economic questions need to be answered:
•What should we produce?
•How should we produce it?
•For whom should we produce it?

Although every country will answer the what, how and for whom questions differently, every country will be confronted with the same fundamental problems: resource allocation and scarcity.

Resources are all the ingredients needed for production. The factors of production include land(natural resources, labor (workers for the production process) entrepreneur (business owners), and capital (technology and machinery/tools of production).

Scarcity refers to the fact that people’s wants or desires are going to be higher than the resources available to achieve
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The above is what Canadian industry produces but what is it that we produce, the goods and services. The largest category of goods is motor vehicles and parts which slightly bypassed energy products such as oil, bitumen and natural gas. The third product Canada produces is metals & minerals followed by consumer goods.

2. Provide a timeline of major exports (what the nation used to heavily produce, what they are known for producing now, future trends) (Julie)
Canada’s Economy is based mostly on natural resources such as fur trade, farming, fishing, forestry, and mining. The history of Canada’s economy goes back to the 16th century when the French and British came to Canada and traded iron tools, weapon and other good with the First Nations people for fur, beaver mostly. The fur where exported back to Europe and Canadian Codfish was dried and salted and sent to Europe as well.
1890 to 1914 – Canada had a rapid growth of mining and manufacturing. In Aug of 1896, the was the “Klondike Gold Rush,” a large mining of gold. The gold rush was hot news that spread quickly and produced a pull factor, drawing the attention of many immigrants and explorers.
By the 1900’s some industries such as carriage making and blacksmithing declined and were replaced with new modern industries such as electrical equipment. Also, now factories were built, and the demand for workers increased.
1890 to 1914 – Pulp and Paper high in demand
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