Course Profile Analysing Current Economic Issues (CIA4U), Grade 12, University Preparation, Catholic
Unit 4: Domestic Policies
Time: 20 hours
Activity
4.1 | Activity 4.2 | Activity 4.3 | Activity 4.4
Unit Description
To
understand what economic policies are, students should know who is responsible
for them. Students look at the various ways the government is involved in the
economy from the producer of goods and services to the distribution of income.
Students examine the revenues and expenditures of different levels of
government. They further examine government spending, and current government
economic practice and its consistency with the values of the Catholic Faith.
Exercising
the morality and compassionate beliefs formed in the Catholic faith, students
evaluate the effectiveness of government legislation in regard to fiscal policy
such as debt payments, income distribution, and the control of the unemployment
rate. These Catholic beliefs are used to examine how effective fiscal and
monetary policies such as government imposed tax rates and the control of the
money supply and interest rates are in creating and/or maintaining economic
stability.
In the final
activity for this unit, students create a “position paper.” This activity
should encompass the skills and knowledge gained in each of the previous
activities of this unit. In this activity, students analyse and evaluate a
specific piece of government legislation to determine its effectiveness in
promoting economic well-being. In the position paper, students adopt a position
and then defend that position using written communication skills. Students
should be able to demonstrate an understanding of the theory presented; the
legislation as it was intended to work; and whether or not it has been
effective. The position supported by each student in the paper will relate
specifically to a government program at one of the three levels of government,
such as minimum wage laws, unemployment insurance, pensions, or welfare etc.
The student must argue that the government’s actions with regard to this
program are either effective or that they are ineffective. The student considers
the attitudes and values of Catholic social teaching and the promotion of
social responsibility, human solidarity, and the common good when adopting
their own specific position.
|
Activity |
Time |
Learning Expectations |
Assessment Categories |
Tasks |
|
4.1 |
3.25 hours |
EI2.01, EI2.02,
EI2.03, EIV.02, ECV.04 |
Knowledge/
Understanding |
Internet Research |
|
4.2 |
6.25 hours |
EC3.01, EC3.03,
EC3.04, SIV.02, ECV.04 |
Knowledge/ Understanding |
Create a newscast
from a teacher-provided theoretical situation |
|
4.3 |
6.75 hours |
ESV.01,
ES1.03, SIV.02, EC3.02, EC3.03, EI2.05, SI3.03, ECV.04 |
Knowledge/ Understanding |
Inflation impact
exercise (Bank of Canada) |
|
4.4 |
3.75 hours |
EC4.03, EC3.04,
ECV.04, |
Knowledge/
Understanding |
Analysis of
Government Financial Performance |
Time: 3.25
hours
Students use the
Internet to locate relevant sites to discover under which level of government
various economic responsibilities fall. The development of thinking and
problem-solving skills is vital in this activity as students locate specific
and relevant information from the vast number of websites available. After
establishing the revenue and expenditure domains for the various levels of
government, students evaluate the effectiveness of specific government programs
designed to enhance the economic well-being of Canadians. This activity will
assist students to become responsible citizens, who are able to locate
information independently and formulate informed decisions as citizens, voters,
and economic stakeholders in society. In this analysis, students come to
appreciate the rights and responsibilities of Canadian citizenship. Students also
evaluate whether governments in Canada are witness to Catholic social teaching
by promoting equality, democracy, and solidarity for a just, peaceful, and
compassionate society. A class discussion of recent or current events could
help the teacher assess students’ views regarding how successful Canada is in
this promotion.
Ontario Catholic
School Graduate Expectations
CGE7e - witness
Catholic social teaching by promoting equality, democracy, and solidarity for a
just peaceful and compassionate society;
CGE7j - contributes
to the common good;
CGE2c - presents
information and ideas clearly and honestly and with sensitivity to others.
Strand(s): Economic Institutions, Assessing Economic Change
Learning
Expectations
EI2.01 - describe
how government is involved in the economy.
EI2.02 - classify
total government spending by level of government (i.e., federal, provincial,
local) and by function (e.g., the provision of goods and services, the
redistribution of income, debt repayments).
EI2.03 - identify
the specific sources and types of municipal, provincial, and federal government
revenues and the relative importance of each.
EIV.02 - explain the
nature and economic functions of Canada’s public institutions.
ECV.04 - describe changes
in incomes and in programs and policies designed to help Canadians achieve an
appropriate level of economic security.
·
Students need the
ability to use the Internet and a browser software program
·
Students should
have a general understanding of various government social assistance programs
and how they are designed to operate.
·
Book computers
with Internet access.
·
The Internet
search component of this activity may be given to students as a homework
assignment provided students have access to the Internet outside of school,
e.g., at home or a local library.
·
The teacher
should have website addresses available for students, in the event that some
students may be unable to locate them independently.
·
While the search
portion of this activity provides students with the development of thinking and
problem-solving skills, the teacher could save time by providing copies of the
revenue and spending responsibilities of each level of government. These
resources may be available from library/resource centre staff, or the offices
of the local MP, MPP, and municipal representatives.
1. Students will conduct an Internet search of
relevant sites to establish:
· a classification of spending by each level of government (local, provincial, federal), to determine which level of government is responsible for providing each service;
· an identification of specific sources of revenue for each level of government (taxation, user-fees, transfer payments etc.).
2. Due to the complexity of
government and the large volume of information available on the Internet,
teachers should limit the amount of research required. As a guideline, the
teacher may require that students find:
· at least eight relevant Internet sites;
· at least four services provided by each of the three different levels of government, e.g., four services provided by local government, four others by the provincial government, etc.;
· at least four specific sources of revenue (taxation) by each of the three levels of government.
3. Upon finding relevant Internet
websites that give information on the sources and spending by each level of
government, students identify various overall sub-groupings in order to
classify each area of expenditures, for example:
· provision of goods and services;
· redistribution of income;
· debt management and repayment;
· advancing economic well-being (both for individuals and corporations);
· promoting trade and commerce to external regions.
4. Students summarize their
findings in a written submission to be presented to the class, and possibly
permanently displayed thereafter. In the form of a large visual display (chart,
table, graphics etc.), students summarize their findings, including relevant
websites, spending and revenue sources for the three different levels of
government, and their classification into the sub-groupings provided above.
Summative
The teacher
evaluates the visual display created by each student.
·
The teacher may
also choose to evaluate the oral presentation performed as students present
their display to the class.
·
Students could
also provide peer assessment as feedback to the presenter.
·
The teacher may
place more emphasis on the Internet search component of this assignment (a
necessary skill for all students) and may choose to formally assess the
students’ ability to find relevant information on the Internet.
·
For an assessment
of this type, see the checklist (Internet Search Effectiveness Assessment
Checklist – Appendix 4.1.1.)
·
Students could
work in pairs to search the Internet. Students may share their findings from
various Internet sites, thereby reducing the time required to find sufficient
relevant sites.
·
The teacher could
assign only one level of government to each student, e.g., find the revenue and
expenditures responsibilities for the provincial government. The other two
levels could then be provided by others through a formal presentation or
informal sharing of notes.
Internet Sites
Canada Customs and Revenue Agency –
www.ccra-adrc.gc.ca/menu-e.html
Ontario Ministry of Finance Homepage –
www.gov.on.ca/FIN/english/enghome.htm
Canadian Tax
Foundation (provides links to a variety of related links) – www.ctf.ca/
Statistics
Canada – economic statistics – www.statcan.ca/english/Pgdb/
Statistics
Canada – municipal revenues and expenditures
– www.statcan.ca/english/Pgdb/State/Government/govt06a.htm
Statistics
Canada – provincial revenues and expenditures
– www.statcan.ca/english/Pgdb/State/Government/govt04a.htm
Statistics
Canada – site for teachers – www.statcan.ca/english/edu/teachers.htm
Yourlocalgovernment.com
– http://199.202.235.157/ylg/govinont.html
Bank of
Canada Financial Statistics – www.bankofcanada.ca/en/rates.htm
Bank of
Montreal Economic Statistics – www.bmo.com/economic/
The Canadian
Taxpayers Association – www.taxpayer.com/
Purpose: use as an
assessment tool for Internet research
|
|
YES |
NO |
|
1. _____ Able to identify and operate a major search engine |
|
|
|
2. _____
Able to use search engine tools provided to quickly identify |
|
|
|
3. _____ Able to use keywords or select topics to locate some related sites |
|
|
|
4. _____ Able to locate at least 8 relevant sites with a few tips from the teacher |
|
|
|
5. _____
Able to re-search to narrow down the number of relevant sites |
|
|
|
6. _____
Able to use data directly from several sites in order to make a |
|
|
|
7. _____
Able to include their own ideas and analysis to the information |
|
|
Time: 6.25
hours
The first activity
of the unit enabled students to examine the role of governments. In this
activity, students analyse what a government can do in certain theoretical
situations. The teacher provides students with the tools of fiscal policy in a
teacher-centred activity through notes on the board or overhead. Students then
form small groups and examine a situation in which they must suggest the
government’s fiscal policy. Students should be aware here that the fiscal
policy should help to develop a just and compassionate society and consider the
morals which were formed in the Catholic tradition. This application exercise
is then communicated to the instructor and/or class through either a live
newscast or a video. This best simulates what economists often do, which is
report their opinions on television during the news or similar programs. The
activity can be evaluated for both application of the fiscal policy tools and
for the communication of ideas and analysis. In Appendix 4.2.1, includes
theoretical situations for various levels of governments. The instructor can
make the situations more relevant to the class by adapting them to local,
provincial, or even national government statistics. The criteria provided are
only a suggestion. The teacher may want to change some of them to better
simulate a local situation. The instructor may also change the names of the
governments from towns, cities, provinces, or countries.
Ontario Catholic
School Graduate Expectations
CGE3f - examines,
evaluates, and applies knowledge of interdependent systems for the development
of a just and compassionate society;
CGE7a - acts morally
and legally as a person formed in Catholic traditions.
Strand(s): Self-Interest and Interdependence, Assessing Economic
Change, Economic Institutions
Learning
Expectations
SIV.02 - describe
how groups of stakeholders and markets within an economy are interdependent and
may be affected simultaneously by a change;
ECV.04 - describe
change in incomes and in programs and policies designed to help Canadians
achieve an appropriate level of economic security;
EC3.01 - describe
the characteristics and causes of economic instability in each phase of the
business cycle;
EC3.03 - explain how
government fiscal policy can help stabilize the business cycle and process and
lower the unemployment rate;
EC3.04 - evaluate
how well current fiscal and monetary policies are achieving the goal of
economic stability;
EI2.04 - describe
the difference between, and the recent trends in, the debts and deficits of the
three levels of government.
·
Students are
familiar with the procedure and handling of the school video equipment.
·
Students are
aware of the instructor’s rules and guidelines when working in a group
activity.
·
Teachers should
reserve and book the video material needed to observe and evaluate the
newscasts.
·
The teacher
should prepare and provide notes on the tools of fiscal policy covered in most
economic textbooks and stated in the Teaching/Learning Strategies below. These
can be provided using an overhead or classroom board. Other sources could be
the local media or recent actions taken by local politicians.
·
Some economic
classes have found it fruitful to visit a town/city council meeting and to
analyse the voting or passing of laws and/or tax implementations.
·
For the
theoretical situations, students work in groups. The teacher can use the
situations provided in Appendix 4.2.1 or alter them by using current statistics
provided in such places as the local newspaper, national newspapers, or
websites such as Statistics Canada.
·
The teacher will
know students well at this stage of the course and can put students in groups
so each group has members with varying abilities. Thus, students can assist
each other in using the tools of fiscal policy.
1. Students take notes regarding the tools of
fiscal policy including discretionary fiscal policy, such as government
spending and changes in taxes, and automatic stabilizers, such as the Canada
Pension Plan and Unemployment Insurance. The teacher also covers possible
limitations of fiscal policy such as time lags, inflexibility in government
spending/tax measures, and poor coordination among the various levels of
government. The teacher may also examine the various debts of governments. The
teacher could use media coverage of the tools of fiscal policy if applicable.
This will take around three to four hours for students to develop a significant
understanding to enable them to produce the newscast effectively.
2. a) The
teacher could put the students into groups of approximately three to four.
b) Each group studies a different theoretical situation. (Appendix 4.2.1)
c) Students create an appropriate fiscal policy which achieves exactly what they are trying to accomplish when implemented. Students could use some class time for this activity, but may need some out of class time.
d) Groups can either produce the newscast live or create a video. In groups of three, one person could act as the economist, another as the newscaster, and another as the video operator if the group chooses to create a video.
e) The whole class then watch and assess the newscast, with the teacher providing both assessment and evaluation.
f) At the conclusion of the videos, the teacher should provide general and specific group feedback in addition to the peer-assessment. The more effective newscast should be copied with the students’ permission to show future classes as exemplars.
· The purpose of this activity is to have the students apply the tools of fiscal policy and to measure their effectiveness. Students are evaluated based on the application of their knowledge of fiscal policies. In addition they are evaluated and assessed on their communication of these policies.
· The students are assessed by peer assessment from the newscast and both peer and self-assessment from their group involvement.
· The teacher provides group feedback and individual evaluation regarding application and communication of fiscal policies. The teacher could use a rubric or other teacher created device to evaluate the individual students.
· Teachers could evaluate and students could assess the Communication component of the newscast using some of the following criteria:
· appropriate use of economic language;
· organization of visual aids during presentation;
· clarity of verbal expression of analysis in solution;
· clarity of economic reasoning in presentation.
· To evaluate the students regarding application, teachers could use some of the following criteria:
· appropriate fiscal policy tools for the government (did they cover all of the tools of fiscal policy or just one);
· application of economic reasoning to the issue (does the policy make economic sense);
· coverage of all fiscal policy tools available;
· policy that supports Catholic traditions and applies knowledge for a just and compassionate society.
· As noted in Appendix 4.2.1, the teacher and students could work together to create an evaluation for the newscast. Such as tool must reflect individual achievement.
· The teacher should combine written and verbal instructions for the student and also allow a written suggestion of the fiscal policy.
· The teacher should highlight keywords/phrases to be incorporated into the “students’ dictionary.”
· The teacher should provide sets of reference notes, outlines, or critical information about the government which was selected.
Thexton,
James. Economics: a Canadian Perspective. Toronto: Oxford University
Press, 1992.
ISBN 0-19-540747-4
Archer,
Maurice. Introduction to Economics: a Canadian Analysis. Oakville:
Maurice Archer Books, 1992. ISBN 0-9691546-4-X
James,
Elijah. Economics: a Problem-Solving Approach. Scarborough:
Prentice-Hall, 1994.
ISBN 0-13-156886-8
CBC News
in Review
–
www.statcan.ca
This website provides a great deal of economic information for the teacher and
the student. The teacher could use information provided here to change the
criteria for the various governments.
– www.afn.ca
– This site is of significant value if researching Aboriginal issues.
–
www.amnesty.org
This site looks at the Universal Declaration of Human Rights and other
international standards.
–
www.canadians.org/index.html
This site provides a critical and progressive voice on key national and
international issues.
Appendix 4.2.1
|
Statistics |
A |
B |
C |
D |
E |
F |
G |
|
Unemployment (%) |
7.5 |
6.2 |
5.0 |
8.1 |
12.7 |
4.4 |
25.0 |
|
Inflation (%) |
1.9 |
3.0 |
2.6 |
2.4 |
1.6 |
6.5 |
42.0 |
|
Real G.D.P. (%) |
-.8 |
+.1 |
+1.1 |
+3.0 |
-2.0 |
+3.3 |
-2.7 |
|
Tax Base
commercial (com) or individual (ind.) |
Com |
Com |
Ind |
Com |
Com |
Ind |
Ind. |
|
Tax Rates (% of government total) |
40 |
35 |
30 |
45 |
45 |
25 |
22 |
|
Election
approaching |
no |
yes |
yes |
no |
yes |
yes |
yes |
|
Deficit (-) or
Surplus (+) |
- |
- |
- |
+ |
- |
+ |
- |
|
Population Trends |
+1% |
+2% |
-1% |
+.5% |
+1% |
+1% |
+4% |
After being assigned a government, students
analyse and assess the current state of that economy and suggest fiscal policy
measures, whic will help stabilize and/or stimulate the economy. Students
create a video newscast or perform it live in class simulating an interview
between a newscaster and economist. Students dress appropriately. The group
should explain to the newscaster how their fiscal policy may help stabilize or
stimulate the economy. The “economist” should also explain how their policy
could have an affect on G.D.P., unemployment, inflation, etc. The reasons why
the students have suggested the fiscal policy for that particular government
should be included in the newscast. Each group must mention all the tools of
fiscal policy during the interview and the implications each tool could have
for the government. The evaluation will be based on the appropriateness of the
fiscal policy tools suggested by the economist.
Note: Since this is a
performance task, it may be beneficial for the teacher to create an evaluation
tool in collaboration with the students. (If students have input into the
evaluation, it ensures they know what is expected of them and gives them a
greater sense of responsibility.) The criteria should come from the
expectations being measured, e.g., EC3.03 and EC3.04.
Other statistics
that could be used are interest rates, stock market index, trade balances, GDP
forecast, and population density.
Time: 6.75 hours
Students investigate
the types, causes, and effects of inflation and how the Bank of Canada uses the
tools of monetary policy to keep prices stable. Students describe the forms and
functions of money in Canada’s economy and the ways in which the Bank of Canada
controls the money supply. They also analyse the factors that influence the
exchange rate of the Canadian dollar and how changes in the value of the dollar
affect the economy. Thinking, problem-solving, communication, and application
skills will be developed via a “Remember When?” theme presentation about prices
and purchasing power over time and by a question-and-answer session with a
guest speaker about banking and monetary policy. By participating in these
presentations, students develop an awareness of the importance of stable prices
and of the banking system in the Canadian economy. Students examine the role of
the central bank and its stakeholders in light of gospel values. That is,
whether the Bank of Canada develops policies and legislation, which promote
fairness among stakeholders in Canada and abroad, and whether individual banks
should also introduce policies, which also promote social justice. For example,
students should discuss the issue of the Canadian government and individual
chartered banks cancelling the substantial amounts of debt owed by developing
countries. The completion of this activity will prepare students for the
culminating activity, where they analyse the effectiveness of current
stabilization policies.
Ontario Catholic
School Graduate Expectations
CGE 2a - listens
actively and critically to understand and learn in light of gospel values;
CGE 2b - reads,
understands, and uses written materials effectively;
CGE 2c - presents
information and ideas clearly and honestly and with sensitivity to others;
CGE 3f - examines,
evaluates, and applies knowledge of interdependent systems (physical,
political, ethical, socio-economic and ecological) for the development of a
just and compassionate society;
CGE 4f - applies
effective communication, decision-making, problem-solving, time and resource
management skills;
CGE 5a - works
effectively as an interdependent team member;
CGE 5e - respects
the rights, responsibilities, and contributions of self and others;
CGE 7a - acts
morally and legally as a person formed in Catholic traditions.
Strand(s): Economic Stakeholders, Self-Interest and Interdependence,
Economic Institutions,
Assessing Economic
Change
Learning
Expectations
ESV.01 - identify
economic stakeholder groups and the criteria each uses to make economic
decisions;
ES1.03 - produce an
analysis of the costs and benefits of an economic change or choice for
different stakeholder groups;
SIV.02 - describe
how groups of stakeholders and markets within an economy are interdependent and
may be affected simultaneously by a change;
SI3.03 - produce an
analysis of the factors that influence the exchange rate of the Canadian dollar
and of the ways in which changes in the dollar’s value affect the economy;
EI2.05 - describe
the forms and functions of money in Canada’s economy and the ways in which the
Bank of Canada controls the money supply;
EC3.01 - describe
the characteristics and causes of economic instability in each phase of the
business cycle;
EC3.02 - identify
the types, causes, and effects of inflation, deflation, and unemployment;
EC3.03 - explain how
government fiscal policy and monetary policy can help stabilize the business
cycle and prices and lower the unemployment rate;
EC3.04 - evaluate
how well fiscal and monetary policies are achieving the goal of economic
stability;
ECV.04 - describe
changes in incomes and in programs and policies designed to help Canadians
achieve an appropriate level of economic security.
·
Students have the
ability to use the Internet as an information source.
·
Students have the
ability to read charts, tables, and graphs.
·
Students have
used effective teamwork and presentation skills.
·
Students have
read and understood the evaluation process for a formal classroom presentation.
The
teacher should:
·
preview the
websites for inflation and salaries, for the Bank of Canada, and for cultural
trends;
·
understand the
concept of a base year when preparing for the Remember When? Assignment;
·
prepare a
database of prices for specific common items that are purchased today;
·
have various
media sources available for students for current inflation and monetary policy
and related articles (The Globe and Mail, The National Post, Maclean’s,
local newspaper, Statistics Canada and Bank of Canada websites);
·
if necessary,
book computers with Internet access for student research;
·
arrange for a
guest speaker (a local banker, investment advisor, or college/university
professor);
·
conference with
the guest speaker to ensure the speaker covers the topic appropriately;
·
discuss with
students the importance of being prepared for the speaker so that an assessment
of students’ learning skills can be made.
1. The teacher begins by directing a discussion
about current prices and price trends in regards to items with which students
are familiar. The teacher divides the class into groups of three or four and
has each group identify eight categories of items that all households buy. The
teacher explains that Statistics Canada monitors the prices of goods and
services purchased across eight categories in the form of the Consumer Price
Index. The teacher introduces the “Remember When?” assignment
(see Appendix 4.3.1). The teacher reminds students that they will present their
findings to the class. To foster a period atmosphere, the teacher informs
students that they are to dress and groom themselves in accordance with the
styles of their decade. Students should understand the importance of the “base
year” when analysing economic data over a period of time.
2. The teacher prepares the students for a guest
speaker by having them examine the websites of the Bank of Canada and the
Bank’s monetary policy. (See Appendix 4.3.2 and Resources). The teacher
explains to the students that a guest speaker will be visiting to speak on the
topic of the Bank of Canada, its implementation of monetary policy and how this
affects the banking system and other stakeholders such as consumers,
corporations, entrepreneurs, borrowers, savers, investors, etc. Students are
assessed on their responses to the web tour, their summary notes re: the guest
speaker and on participation in the speaker’s discussion.
·
The purpose of
the Remember When? assignment is to impress upon the students the importance of
stable prices in the economy over time.
·
From the
examination of websites about the Bank of Canada and the Bank’s monetary
policy, the teacher compares student answers with an answer key. This assesses
Knowledge/Understanding.
·
The teacher can
assess students’ learning skills through observation of student initiative such
as work habits and attentiveness during the guest speaker’s presentation.
·
Knowledge/Understanding,
Thinking/Inquiry, Communication, and Application can be assessed through a test
on inflation and monetary policy formulated by the teacher.
The
teacher should:
·
incorporate key
terms into “student dictionaries”;
·
allow practice
sessions for the group presentation (Remember When?).
Websites
www.bankofcanada.ca
www.bankofcanada.ca/en/inflation
calc.htm www.infoplease.lycos.com/year/19??.html
www.statcan.ca/english/Subjects/Cpi
www.anc.org.za/anc/newsbrief/2000/news0721.txt
www3.sympatico.ca/sworker
www.wcr.ab.ca/news/1999/0628/thirdworlddebt062899.shtml
www.catholicinsight.com/other/social/morator.html
Instructions
Your group
has been assigned one decade between 1914 and 2000 (the 10s, 20s, 30s…, and so
on). Your group will access the following websites to prepare your
presentation:
www.bankofcanada.ca/en/inflation_calc.htm
www.infoplease.lycos.com/year/19??.html
www.statcan.ca/english/Subjects/Cpi
Go to the
Bank of Canada website identified above (Inflation Calculator) and determine
the extent to which prices have increased since the decade your group has been
assigned.
Search the
website for information (infoplease) about the economic, political, and
cultural events affecting Canada and the world during your decade.
Your group
will present your findings to the class in an eight- to ten-minute presentation
on the characteristics of the decade and explain how prices in that decade
compare to prices now. Each group will complete a chart (positioned at the
front of the class) which identifies common items such as bread, milk, housing,
transportation (automobile?), vinyl records/audio cassettes/compact discs,
calculators, computers, etc. and their corresponding prices in a specific
decade.
Note: changes/advances in technology may affect the
ability of the students to compare selected items. In order to determine prices
for specific items in their assigned decade, students can use current prices
and work backwards using the value for the Consumer Price Index (CPI) in their
decade to determine a general price for selected items.
Home
1. What was the most recent overnight rate (or
key policy rate) of interest?
2. What was the most recent $Can./U.S. closing
exchange rate?
About The Bank
3. Why was the Bank of Canada founded?
Overnight Rate
4. What was the Overnight or Key Policy Rate
formerly known as? List the next five pre-specified dates for announcing any
changes to the official rate.
5. List the other (important) interest rates
that are listed on this web page.
Government
Securities and Savings Bonds
6. From whom would an investor buy a government
security such as a treasury bill?
7. What is the yield on current year Canada
Savings Bonds? If applicable, what is the value of the Canada Savings Bond(s)
you currently own?
Currency
8. The Bank of Canada is responsible for the
__________ and ____________ of Canadian ______ ______. It also houses the
__________ __________.
9. Go to “Currency Converter”. What is the
exchange rate of the Canadian dollar in terms of a currency other than the U.S.
dollar?
Inflation
10. The Bank of Canada aims to keep inflation at
___ per cent.
11. The Bank of Canada measures core (CPI)
inflation, and not total CPI inflation, as an operational guide. Why is this
so?
12. During the last five years has the Bank kept
CPI and core CPI in the inflation target range?
Monetary Policy
13. What is monetary policy directed towards?
Backgrounders – The
Bank Rate
14. What is the bank rate? How does the bank rate
differ from the overnight rate?
Backgrounders – The
Benefits of Low Inflation
15. Summarize the “costs” of inflation.
16. Summarize the “benefits” of low inflation.
Backgrounders –
Canada’s Money Supply
17. Bank notes issued by the Bank represent only a
_______ ________ of all
the money circulating in the economy at any one time.
18. Describe the four different measures of money
in circulation.
19. How does the Bank of Canada control the money
supply (rate of money growth)?
20. The objective of the Bank of Canada’s monetary
policy is to support a level of ____________
by Canadians that is consistent with the Bank’s goal of __________
_____________. This is defined as keeping __________ within the
inflation-control target range. By influencing the rate at which the supply of
________ and _________ is growing, total spending on goods and services in the
economy can be ____________.
Backgrounders – The
Consumer Price Index
21. The Consumer Price Index (CPI) provides a
broad measure of the _______ of __________ in Canada. The CPI is the most
important indicator of inflation because of its ____________ use, such as calculating
changes in government payments such as Canada __________ _______.
22. How many goods and services are in the average
household’s expenditure on food, housing, transportation, etc.?
23. Explain the concept of “weights” and the CPI.
24. What is the current base year for the CPI?
25. Does the CPI give a completely accurate
picture of inflation? Why/Why not?
26. The Bank of Canada monitors changes in the CPI
in deciding when to take action to adjust ____________ ____________ to keep
inflation within the range of the inflation-control target.
Backgrounders –
Disinflation and Deflation
27. Distinguish between disinflation and
deflation.
28. What is the difference between harmful
deflation and benign deflation?
29. The Bank of Canada treats the risk of inflation
moving above the top or below the bottom of its target range with ________
concern.
Backgrounders – The
Exchange Rate
30. What does “exchange rate” refer to? What does
it determine? What happens when the Canadian dollar falls in value? Why does
the exchange rate play a particularly important role in Canada?
31. Canada has a ____________ exchange rate. This
means there is no set ________ for our currency compared with any ________
currency. The exchange rate is affected by ________ and ________ for Canadian
dollars in _______________ exchange markets. On an average day, CAN$____
billion is bought and sold on these markets.
32. Explain the factors which influence the supply
of and demand for the Canadian dollar.
33. Together, __________ rates and the
____________ rate determine the ____________ conditions in which the Canadian
economy operates. Changes in the exchange rate affect __________ and __________
in the economy just as changes to interest rates can either __________ or
__________ the level of economic activity.
34. The Bank of Canada influences the exchange
rate only ____________.
35. When does the Bank of Canada intervene in the
foreign exchange market?
Backgrounders –
Inflation-Control Target
36. Inflation-control targeting has been a
_________________ of monetary policy in Canada over the past decade. In May
2001, the 1–3 per cent target range was renewed to the end of ______.
37. What is the relationship between monetary
expansion and short-term interest rates?
38. How is monetary policy tied to an
inflation-control target more understandable and more self-reinforcing?
Backgrounders –
Intervention in the Exchange Market
39. How does the federal government conduct
foreign exchange market intervention? How would the Bank, for example, moderate
a decline in the price of the Canadian dollar?
40. In the long run, the value of the Canadian
dollar is determined by economic forces. Discuss.
Backgrounders –
Large Value Transfer System (LVTS)
41. What is the Large Value Transfer System?
42. The LVTS also provides the setting in which
the Bank of Canada conducts its monetary policy. How does this work?
43. Changing the Target Rate is the Bank’s most
____________ monetary policy tool and is the way that it ____________ Canada’s
economy.
Backgrounders – The
Transmission of Monetary Policy
44. The transmission mechanism of monetary policy
has long and variable lags because the economy takes time to adjust to changes
in monetary conditions. Interest rate changes can take from ___ to ___ months
to work their way through the economy and have a significant effect on
inflation.
45. Describe the stages involved in this “dynamic”
process of adjustment.
46. List the economic indicators used to judge
what inflation will likely be in the future.
47. Because of the lag, monetary policy must focus
on the _________, rather than the __________.
Backgrounders –
What is Money?
48. List the traditional and newer forms of money
used by the average Canadian.
49. Describe the three principle roles of money.
50. True or False It
is the job of the R.C.M.P. to protect bank notes against counterfeiting.
Time: 3.75
hours
During this
activity, students will demonstrate the skills and knowledge gained in each of
the previous activities in this unit. Students assess and evaluate a specific
piece of government legislation to determine its effectiveness in promoting
economic well-being. They write a paper in which they adopt and defend a position.
Students should be able to demonstrate an understanding of the theory
presented, the legislation as it was intended to work, and its effectiveness.
The position supported in the paper will relate specifically to a government
program at one of the three levels of government, such as minimum wage laws,
unemployment insurance, pensions, welfare etc. The student must argue either
that the government’s actions with regard to this program are effective, or
that they are ineffective. The student must consider the attitudes and values
of Catholic social teaching and the promotion of social responsibility, human
solidarity, and the common good when adopting their own specific position.
The student should
clearly identify the economic stakeholder for whom they are evaluating the
legislation, since the effectiveness of legislation may depend on the viewpoint
of a particular stakeholder, e.g., an increase to minimum wage legislation may
increase spending in the economy which is viewed as a success by some, while
businesses employing mostly minimum wage positions may view this as an
unnecessary increase in costs and therefore a detriment to the creation of
jobs.
Ontario Catholic
School Graduate Expectations
CGE 1d - develops
attitudes and values founded on Catholic social teaching and acts to promote
social responsibility, human solidarity, and the common good;
CGE 2c - presents
information and ideas clearly and honestly with sensitivity to others;
CGE 3b - crates,
adapts, evaluates new ideas in light of the common good;
CGE 3f - examines,
evaluates, and applies knowledge of interdependent systems (physical,
political, ethical, socio-economic and ecological) for the development of a
just and compassionate society;
CGE 4f - applies
effective communication, decision-making, problem-solving, time and resource
management skills.
Strand(s): Assessing Economic Change, Economic Stakeholders
Learning
Expectations
ECV.04 - describe
changes in incomes and in programs and policies designed to help Canadians
achieve an appropriate level of economic security.
EC3.04 - evaluate
how well current fiscal and monetary policies are achieving the goal of
economic stability;
EC4.03 - evaluate
the effectiveness of government legislation (e.g., minimum wage, conditions of
work) and programs (e.g., education, health care, unemployment insurance,
pensions, welfare) designed to enhance the economic security of Canadians;
ES2.04 - apply the
process, skills, and concepts of economic inquiry to analyse public policy issues.
·
Students have
knowledge of the workings of government fiscal and monetary policy.
·
Students know
which level of government (municipal, provincial, federal) is responsible for
certain specific taxation and expenditure legislation and how to locate certain
specific legislation - the actual text.
·
Students have the
ability to search online for other independent reviews of the effectiveness of
various government legislation (to either confirm or oppose the position
adopted by the student).
·
Students have
studied the format for a formal written paper.
·
Teachers plan
time to conference with each student to ensure the student understands the
intention of the government with regard to the legislation selected. Teachers
ensure that students have carefully considered the teachings of the Catholic
Faith in their paper.
·
It may be more
effective for each individual student to adopt a position on a unique piece of
legislation, so that a wide variety of topics are covered. This will be
particularly effective if the students are also providing oral presentations of
their positions to the class. As an alternative, it may prove beneficial if two
students take opposing positions on the same legislation in order to debate
opposing views. The teacher decides in advance which approach is best suited to
the class.
·
In order to
reinforce the various responsibilities of different levels of governments,
teachers may want to ensure that students create several position papers on
legislation on each of the three levels of government, rather than have the
entire class working on legislation of only one level of government.
1. Each individual student identifies a specific government program. This may involve the actual text of the legislation, or a law in general, such as the ability of retail stores to open on Sundays and holidays.
2. Teachers could allow students to select a government program at any level of government which is of interest to them, or provide a list.
3. Students examine the implications of this program on a specific group of economic stakeholders in Canada. Students should strive to include subjective and objective data in their analysis.
4. Students prepare a formal written paper which adopts the position that the particular program they examined has been either effective or ineffective in promoting the economic well-being of the particular economic stakeholder group being considered.
5. The student defends the “position” about whether the program is effective or ineffective. While the student may briefly acknowledge the view opposing their own, they should in no way attempt to justify both positions, but rather should communicate arguments supporting their own position.
6. Teachers may consider a formal oral presentation as well as the submission of the written paper. As an alternative, the class would benefit from a short informal presentation by each student explaining the legislation they reviewed and the position they took regarding its effectiveness.
7. This activity provides ample opportunity for students to reflect on their own values, and whether the government program they examined is consistent with the views of the Catholic Church.
Summative
·
Evaluate the
formal written report submitted. See Economic Position Paper Rubric – Appendix
4.4.1.
·
Evaluate the
student’s oral presentation of the position paper, if chosen, as an alternative
in
Strategy 5 outlined above.
·
Teacher could
assign each particular program or piece of legislation and provide some
background, thereby reducing or eliminating the research component of the
assignment. From this point the student would read the material provided by the
teacher and adopt a position and support it from the information provided.
·
Teachers could
provide the topics and make them more general in nature rather than specific
legislation, e.g., municipal regulation of housing in general, rather than a
specific by-law which requires a minimum housing lot width in a nearby
sub-division.
·
Students could
work in pairs or small groups.
·
Teachers could
have the student provide only an oral presentation of their position and
thereby eliminate the written component altogether.
Internet Sites
Canada Customs and
Revenue Agency – www.ccra-adrc.gc.ca/menu-e.html
Ontario
Ministry of Finance Homepage – www.gov.on.ca/FIN/english/enghome.htm
Canadian Tax
Foundation (provides links to a variety of related links) – www.ctf.ca/
Statistics
Canada – economic statistics – www.statcan.ca/english/Pgdb/
Statistics
Canada – municipal revenues and expenditures
– www.statcan.ca/english/Pgdb/State/Government/govt06a.htm
Statistics
Canada – provincial revenues and expenditures
– www.statcan.ca/english/Pgdb/State/Government/govt04a.htm
Statistics
Canada – site for teachers – www.statcan.ca/english/edu/teachers.htm
Yourlocalgovernment.com
– 199.202.235.157/ylg/govinont.html
Bank of
Canada Financial Statistics – www.bankofcanada.ca/en/rates.htm
Bank of
Montreal Economic Statistics – www.bmo.com/economic/
The Canadian
Taxpayers Association – www.taxpayer.com/
Other Resources
Government resources
identifying specific legislation
Purpose: use to evaluate a written paper in economics
|
Categories/ Criteria |
Level 1 |
Level 2 |
Level 3 |
Level 4 |
|
Communication Presents information in the form of an
argument |
- communicates
information in the form of an argument with limited effectiveness |
- communicates
information in the form of an argument with some effectiveness |
- communicates
information in the form of an argument with clarity |
- communicates
information in the form of an argument with a high degree of clarity |
|
Application Develops arguments from thesis |
- thesis statement
reflects the argument with limited clarity |
- thesis statement
reflects the argument with some clarity |
- thesis statement
reflects the argument with clarity |
- thesis statement reflects the argument
with a high degree of clarity |
|
Knowledge/
Understanding Understands
the concept of the significance of this government program |
- demonstrates a
limited understanding of the government’s program |
- demonstrates
some understanding of the government’s program |
- demonstrates a
considerable understanding of the government’s program |
- demonstrates a
high degree of understanding of the government’s program |
|
Thinking/Inquiry Use of critical thinking skills |
- applies critical
thinking skills with limited effectiveness |
- applies critical
thinking skills with moderate effectiveness |
- applies critical
thinking skills with considerable effectiveness |
- applies critical
thinking skills with a high degree of effectiveness |
Note: Students whose achievement level is below Level
1 (50%) have not met the expectations for this assignment/activity.
Student’s Name
__________________ Overall
level _____
Comments regarding
strengths, areas to improve, and next steps.
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