1. Economy Review Answer Key

2. First Nations

3. What is a Subsistence Economy? The set of activites practised by a group to meet their basic NEEDS and ensure their survival.

4. How did aboriginal lifestyle reflect their economy? Algonquians / Inuit -> NOMADIC They followed their game (food) gathered Iroquois -> sedentary They crew crops (agriculture) Subsistence economy: they did what they had to in order to survive!

5. What is barter? The trade of one product for another. EG: Iroquois would trade surplus corn for caribou meat from the Algonquians.

6. What is meant by standard of living? The quality of life enjoyed by a person YOUR OPINION! How did the arrival of the Europeans change this for the aboriginal population in NA? THINK OF WHAT THEY BROUGHT: firearms, new foods (cucumbers, apples), disease, warfare, brass pots (other metals), cotton

7. French Regime

8. What is MERCANTALISM? A country’s power is measure by how much wealth it has

9. What was the first natural resource exploited by the French? NATURAL RESOURCE: fish WHY: provided essential animal protein –Whale and seal oils (used in lamps) represented a significant portion of exports for Europe IMPACT: –Land: temporary fishing posts were set up (little effect on organization of territory) –People: some local merchants set up o supply for colonists –Favours development of shipyards

10. What was the second natural resource exploited by the French? NATURAL RESOURCE: fur WHY: fashion in Europe (high DEMAND) IMPACT: –Land: expand territory –People: monopolies were granted 1663: Royal Government, everyone can participate Coureurs des bois go inland compete vs merchants Voyageurs were granted permits (25 per year) to limit # of men in fur trade and control quality of fur

11. What does it mean to diversify an economy? Basing your economy on more than one thing. Eg: not only on fur trade, develop new sectors

12. What was the Triangle of Trade?

13. How did New France Diversify the Economy? (4 minimum) Fishing Farming (agriculture) Iron (shipyards) Commercial/Craft –CRAFT: wigmakers, gold and silversmiths –COMMERCIAL: sell imported products (p.168-173)

14. British Regime

15. How does protectionism help the local economy? Favours the purchasing of resources from within the Empire. Protectionism: an economic policy established by a state or gov’t in order to protect the economy of the country or empire from outside competition

16. How did preferential tarrifs help BNA (QC and ONT) Created a demand for the products produced in British North America. Limited competition with other empires Preferential tarrifs: the imposition of lower customs duties on products imported from the colonies EG: Corn Laws (1815) for grain

17. What happens to the demand for fur in the early 1800s? The demand diminished (decreased) Higher demand for timber – 1806 – Britain at WAR –Napoleon imposed a continental embargo

18. Which key product replace3s fur as the main export from BNA in 1800s? TIMBER!!!!! (sawed wood intended for construction)

19. Timber leads to the creation of a new financial institution. Bank of Montreal 1817 Merchants understood that unifying the capital (money, coins, notes, legal currency) would lead to a better growth of their capital. p.188

20. Transportation networks change Increased production that resulted from industrialization = need for better transportation = reduce cost of distribution. CANALS: LaChine Canal 1825 (first canal built) –Inland transportation by water Railway Network: Fundamental aspect of industrialization during British Regime –Good distribution even in winter –Cities linked by railways = important trading center

21. When the British adopted a policy of free trade, who is now a trading partner? NAFTA (1994)– North America Free Trade Agreement US, Canada, Mexico

22. Reciprocity Treaty 1854 Canada and US – reduction of duties charged on goods exchanged Increased the exchanges between Canada and US

23. Place the following terms on a timeline with a description of each term (not every term will have a specific date) Term Description …………… …………… subsistence- fish – transportation development- timber – Confederation – barter – fur – wheat - shipbuilding agricultural expansion – 1663 - demand - triangle of trade - preferential tariffs - mercantilism – National Policy -territorial expansion diversification- whales