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The Basics of
Economics
S
The economy is
based on wants and
needs.
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S 1. Needs: Are essential for survival.
S Examples:
S Food
S Shelter
S Clothing
Basis of Economics
S 2. Wants: The desire for things that are not
essential.
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S
S
S
S
S
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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
S
S Demand: Refers to how much
(quantity) of a product or service
is desired by buyers.
S 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
S If demand decreases and supply
remains the same then the price will
probably go down.
S If the demand for a product goes
down, the price will most likely go
down too.
Laws of Supply and Demand
S If supply increases and demand
stays the same then price will be
lower.
Laws of Supply and Demand
S If supply decreases and demand
remains the same then price will
go up.
Examples of supply and
demand
S 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
S To live with only the minimum
required to subsist/maintain life.
Barter
S When goods and services are exchanged without
the use of money.
S Example: I’ll trade you my peanut butter
sandwich for your turkey sandwich.
1. The First Nations
S The First Nations had a subsistence
economy.
S Question: What does that mean?
The First Nations
S Question:
S What would be the difference
between the economies of sedentary
and nomadic groups?
2. The Iroquois
S Combined farming, hunting, fishing,
and gathering to maintain their
economy and their way of life.
S Their main crops included corn,
beans, and squash.
S They were very self-sufficient.
3. The Algonquin
S Lived mainly by hunting, fishing, and
gathering.
S They could not grow crops because their
natural environment could not support
them.
S This is the main reason why the
Algonquin groups were nomadic.
4. Trade
S Question:
S Why do you think trade would have
occurred between the Iroquois and
the Algonquin?
Answer:
S They each had something that the
other one wanted.
S Alliances. A trading alliance usually
also meant a military alliance.
Trade
S A) The Iroquois would trade surplus
corn, beans, squash, tobacco, twine
and pottery.
S 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 StLawrence.
The Arrival of Europeans
S Effects on the people:
S A) Europeans and Amerindians traded with each
other. There were now European products
circulating.
S Ex: knives, pots, glass, guns, brandy, and other
things made from metal
S 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
S Question:
S Do you think that the arrival of
Europeans had a positive or negative
effect on the Amerindians? Why?