The Basics of Economics

The economy is based on wants

and needs.

1. Needs: Are essential for survival. Examples: Food Shelter Clothing

Basis of Economics

2. Wants: The desire for things that are not essential.

Examples: A good lifestyle A job A good self-esteem Security Good friends Material possessions: nice car, brand

name clothes

Most economies rely on supply

and demand

Demand: Refers to how much (quantity) of a product or service is desired by buyers.

Supply: Refers to how much the market can offer.

Laws of Supply and Demand

Prices of goods (things) or services reflect how much a company can provide or SUPPLY.

Examples

If demand increases and supply remains the same, the the price will increase.

If a product is in high demand, but there is only one supplier, the price will be very HIGH.

Laws of Supply and Demand

If demand decreases and supply remains the same then the price will probably go down.

If the demand for a product goes down, the price will most likely go down too.

Laws of Supply and Demand

If supply increases and demand stays the same then price will be lower.

Laws of Supply and Demand

If supply decreases and demand remains the same then price will go up.

Examples of supply and demand

If a product is in high demand, and there are many suppliers, the prices will be lower. This also has to do with the different suppliers competing with each other.

Subsistence

To live with only the minimum required to subsist/maintain life.

Barter

When goods and services are exchanged without the use of money.

Example: I’ll trade you my peanut butter sandwich for your turkey sandwich.

1. The First Nations

The First Nations had a subsistence economy.

Question: What does that mean?

The First Nations

Question: What would be the difference

between the economies of sedentary and nomadic groups?

2. The Iroquois

Combined farming, hunting, fishing, and gathering to maintain their economy and their way of life.

Their main crops included corn, beans, and squash.

They were very self-sufficient.

3. The Algonquin

Lived mainly by hunting, fishing, and gathering.

They could not grow crops because their natural environment could not support them.

This is the main reason why the Algonquin groups were nomadic.

4. Trade

Question: Why do you think trade would

have occurred between the Iroquois and the Algonquin?

Answer:

They each had something that the other one wanted.

Alliances. A trading alliance usually also meant a military alliance.

Trade

A) The Iroquois would trade surplus corn, beans, squash, tobacco, twine and pottery.

B) The Algonquin would trade dried meat and fish, better quality furs, hides, and birch bark canoes.

5. The Arrival of Europeans

a) In the early 16th century European fishing grounds were set up along the shores of North America and the Gulf of St-Lawrence.They came into contact with Amerindian hunters on the shores of the Gulf of St-Lawrence.

The Arrival of Europeans Effects on the people: A) Europeans and Amerindians traded with each

other. There were now European products circulating.

Ex: knives, pots, glass, guns, brandy, and other things made from metal

B) In order to have something to trade with the Europeans, the Amerindians started to hunt more so they could exchange furs.

The Arrival of Europeans

Question: Do you think that the arrival of

Europeans had a positive or negative effect on the Amerindians? Why?