Topic 1.4 – Economics and Culture NL Studies 2205 Topic 1.4 – Economics and Culture

Economics & Culture Economics - the way we use our resources to meet our needs and wants. Economic activities are fundamental components of all cultures.

Subsistence Economy an economy where people attempt to produce at a level to achieve basic needs rather than accumulate wealth. Eg. Cutting and Burning Firewood, Picking Berries, growing Vegetables.

Subsistence Today Subsistence Living today…you bet! - Food Fishery - Berry Picking - Moose Hunting - Rug Hooking Subsistence Economy will change as populations change.

Eg. Richard Proenneke http://www.youtube.com/watch?v=iYJKd0rkKss&sa fe=active

Who was he? as a self-educated naturalist who lived alone for nearly thirty years in the mountains of Alaska in a log cabin he had constructed by hand near the shore of Twin Lakes. Proenneke hunted, fished, raised and gathered his own food, and also had supplies flown in occasionally. He documented his activities in journals and on film.

Another type of Economy…. Barter Economy - Goods are traded for other goods. The use of currency (Money) evolves as a way of exchange of goods.

Market Economy Market Economy - an economy in which everyone uses currency Two Principles that affects this: Consumer Choice – what people want. Competition – From other businesses that make the same product and the prices of goods are “set” by the market.

Law of Supply and Demand The price of a Product is based on the balance between Supply and demand. How much the producers are willing to produce when receiving a certain price. How much the buyers are willing to purchase at a certain price.

Economic Relation to Culture Most people engage in “traditional” activities today because it has become part of their culture. They don’t need to do so it to meet basic needs.

At the same time…. - Subsistence living will allow one to potentially save money.

Opportunity Cost - Having to choose between two or more items because you cannot afford them all at once.

Economics & Lifestyle What does wealth meant to you? Would you trade a life of the city/luxury/access to many resources for a life of tranquility/peacefulness but less resources?

Income per Capita of an area. Page 51.