Question

Using complete sentences, discuss the basic characteristics of the economies of Canada and the United States. Consider economy type, development levels, and the role of government in the economy.

Answer 1

Both the United States and Canada are capitalist economies being run, to some extent, on the principles of free market.

Anyone is free to open a small business, hire people, sell their product and make money.

Both countries are also part of the North American Free Trade Agreement (NAFTA) ensuring free trade between both countries.

However, there are certain differences due to the location and size of both countries. 

Canada has a population almost 10 times less than the United States and it's economy is largely based on resource exports such as Timber, Oil and Gas.


American economy is far more diversified with agriculture, manufacturing, IT, and resources all playing a big part in creating jobs.
Both countries though, have a highly developed economy, supported by excellent infrastructure and a services sector which brings in the majority of income.

Both countries though, also have big governments with 20%-25% of the GDP of each country being made up of government spending.


American government spends more than $600 billion on the military alone while Canadian government spends a huge amount of money on social programs.

Answer 2

Answer:

The United States and Canada both have mixed economies in which people are free to make their own economic decisions without much government influence. However, the governments have some regulations in place that must be followed. These regulations are mostly in the form of protections that watch out for the best interests of employees, consumers, and the environment. Both Canada and the United States have highly developed economies, high GDPs, and high standards of living.