1.  The Basics of Economics

2.  The economy is based on wants and needs.

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

4. 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

5.  Most economies rely on supply and demand

6.  Demand: Refers to how much (quantity) of a product or service is desired by buyers.  Supply: Refers to how much the market can offer.

7. Laws of Supply and Demand Prices of goods (things) or services reflect how much a company can provide or SUPPLY.

8. 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.

9. 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.

10. Laws of Supply and Demand  If supply increases and demand stays the same then price will be lower.

11. Laws of Supply and Demand  If supply decreases and demand remains the same then price will go up.

12. 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.

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

14. 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.

15. 1. The First Nations  The First Nations had a subsistence economy.  Question: What does that mean?

16. The First Nations  Question:  What would be the difference between the economies of sedentary and nomadic groups?

17. 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.

18. 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.

19. 4. Trade  Question:  Why do you think trade would have occurred between the Iroquois and the Algonquin?

20. Answer:  They each had something that the other one wanted.  Alliances. A trading alliance usually also meant a military alliance.

21. 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.

22. 5. The Arrival of Europeans a) In the early 16 th 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.

23. 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.

24. The Arrival of Europeans  Question:  Do you think that the arrival of Europeans had a positive or negative effect on the Amerindians? Why?