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STUDY GUIDE ECONOMICS 310 APRIL 2002 Questions on the final examination may be identical to those listed here, they may be combinations of questions, they may be only portions of questions or they may be new questions on topics covered here. Material not covered on this study guide will not be included in the final examination. This study guide is a compilation of many old and some new examination questions. The number of questions on a topic reflects the length of time a topic has been in the course syllabus, not its importance in the course as presented this year. The emphasis placed on the material in the classroom is a better guide to the importance of the material than the number of questions on the study guide. 1. By the mid 17th century New England had a population of perhaps 50,000, Quebec about 3,000 and Newfoundland had a trivial permanent population. Explain the reasons why these colonies developed so differently. 2. By the mid 17th century New England had a population of perhaps 50,000, Quebec about 3,000 and Newfoundland had a trivial permanent population. Which pattern of development was most valued by the mercantilist mother countries? 3. Compare and contrast the impact of Europeans on native peoples in Central America and on native peoples in Canada, giving explanations for the differences. 4. Describe the process of European exploration which led to the discovery of the New World. What were the factors which contributed to European success in dominating world commerce? 5. The early history of the regions which became Canada consisted of a few relatively unimportant colonies in the new world. Survey the various new world colonies, outlining the nature of their economies and their relationships to each other, and discuss the extent to which their economic activities met the mercantilist goals of their mother country. 6. Describe the process of European exploration which led to the discovery of the New World. What were the factors which contributed to European success in dominating Central America? 7. Describe the various types of native economies found in Canada at about the time of European contact. 8. Discuss the impact of monopoly on the fur trading companies and on native peoples. 9. Discuss the major tenants of mercantilism and explain how the colonies of New France and Newfoundland met the policy goals of their governments. 10. Discuss the place of Canada in trade within North America and between North America and Europe in the 17th and the 18th centuries. 11. During the early 17th century seven attempts were made to settle Newfoundland, but they all failed. At the same time, settlement was established and flourished in New England. Use the staples theory and the livelihood model to explain why settlement was so much more successful in New England than in Newfoundland. Do these models tell the whole story? Explain briefly. 12. Explain why the fur trade had a strong tendency towards monopoly. 13. Explain why the Spanish discovery of the New World had a lasting impact on the economies of the new and old world while the Viking discovery of the New World had no lasting impact. 14. Fishermen may have begun coming to Newfoundland to dry fish as early as the late 15th century, but a residential fishery replaced the migratory fishery only at the end of the 18th century. Explain the factors which delayed the growth of a residential fishery. 15. How would the evolution of Canada's economy have differed if there had been no European demand for furs in the 17th and 18th centuries? 16. The fishery and the fur trade differed greatly in their organisation. Compare and contrast the nature of competition in the two industries and discuss the impact of competition on the income of the participants in each trade 17. The Old World governments which promoted settlement in the New World believed that the colony should serve the interests of the mother country. Discuss the benefits mother countries expected to receive from their colonies and indicate which colonies of all those in the New World best met the goals of the mother countries. 18. Discuss the place of Canada in trade within North America and between North America and Europe in the 17th and the 18th centuries. 19. Compare and contrast the impact of Europeans on native peoples in Central America and on native peoples in Canada, giving explanations for the differences. 20. Discuss the importance of military alliances between native peoples and Europeans to the evolution of the fur trade. 21. How would the evolution of Canada's economy differed if the French government had not taken direct control of the colony during the second half of the 17th century? 22. The English colony of New England developed a thriving commerce with the West Indies and Europe. Quebec's commerce was not nearly as vigorous. Outline the major reasons for the differences in economic 2 performance. 23. The staples thesis argues that economic development is driven by the markets for staple export products while the livelihood model argues that the productive capacity of a region is more important in determining development. Discuss which approach best explains the development of Ontario up to Confederation 24. According to the staples thesis, each staple creates a set of linkages which stimulate the economic development of the region. Discuss the factors which determine whether a region is able to capture the linkages of the staple it produces? 25. Discuss role of agricultural resources in determining the timing and the extent of settlement in Newfoundland, the Maritimes and Central Canada. Use the livelihood model in your answer. 26. Use the staples model to explain the impact of fish, fur and sugar production on the pace and nature of economic development. Which staple was better for the economic development of a region? Justify your answer. 27. Using the staples thesis, describe the linkages of the fur trade and discuss the contribution of that industry to the economic and political development of Canada. 28. Timber has been an important Canadian export from the early nineteenth century to the present. Using the staples thesis, compare the impact the timber industry had on economic development in Southern Ontario with the impact it had on economic development in the Maritimes during the early nineteenth century. 29. Discuss the factors which determined the timing of the development of the timber industry in British North America. 30. The staples thesis argues that economic development is driven by the markets for staple export products while the livelihood model argues that the productive capacity of a region is more important in determining development. Discuss which approach best explains the development of Ontario up to 1850. 31. The staples thesis argues that the pace of development of a region is determined by the external demand for a staple and the richness of the staple's linkages. Briefly describe the staples which were important in the colonies of British North American before 1850 and discuss the impact of the success or failure of staples production on the rate of settlement and the pace of economic development in those colonies. 32. The fishery, the first industry to attract labour and capital to Canada, has had a long and often troubled history in Canada, but was the basis for much of the early economic activity in Atlantic Canada. Discuss the strengths as well as the weaknesses of the fishery as a source of economic 3 development in the pre-confederation period. Be sure to use the staples model in your answer. 33. Discuss the nature of agricultural development and the impact of agriculture on the economies of the Maritimes, and Central Canada in the pre-confederation period, using the livelihood model in your answer. 34. By Confederation differences had emerged in the development of Ontario and the Maritimes. Using the livelihood model explain why these differences emerged in the two parts of British North America. 35. New world colonies tended to be abundant in natural resources, and have relatively short supplies of capital and labour. Discuss the implications of this economic situation for diversification away from natural resource production, considering the role of tariffs and transportation costs in your discussion. 36. Between the beginning of British control of the territories which became Canada to Confederation Britain moved from a policy of mercantilism to a policy of free trade, but the British North American Colonies became free to set their own tariffs. Discuss the changes in British tariff policies, and explain the differences in the tariff policies of the Canadas, New Brunswick and Nova Scotia. Include the Reciprocity Treaty in your discussion. 37. Galt claimed that the tariff changes introduced in Canada in the 1850s were intended to raise needed revenue and were only incidentally protective. Discuss the structure of the tariff schedule imposed and determine if his statement is plausible. Compare the tariff policies of New Brunswick and Nova Scotia before Confederation and explain why those provinces adopted somewhat different policies. 38. The fur trade, like many other natural resource sectors, suffered from depletion of natural resources. Discuss the evidence that depletion occurred and consider the changes in the extent of depletion which occurred when there was competition between rival trading companies compared to when one company monopolised the trade. 39. In the 18th century Quebec exported substantial quantities of wheat and flour, but early in the 19th century these exports stopped. Some scholars have argued that Quebec agriculture was in crisis in the early 19th century while others argue that its agriculture was merely adjusting to changing economic circumstances. Using a supply and demand diagram, explain the changes in market conditions which could have led to a cessation in exports. Do you believe that Quebec agriculture was more likely in crisis or simply adjusting? Justify your answer. 40. How did trade barriers erected on account of wars won and lost by Britain foster the development of Maritime staples between 1776 and 1850? In what areas were the region's resource endowments adequate for the task. In what other areas were they insufficient? Does the staples theory appear 4 to provide a good explanation for the observed pattern of development? 41. Describe the obligations of the censitaire in the seigniorial system. What impact did the system have on the economic development of New France? What impact did the system have on the economic well-being of the habitant? 42. French Canadian agriculture has been characterised as so backward and inefficient that by the early 19th century it became unable to produce a surplus beyond the consumption needs of the farmers themselves. Discuss the extent to which there is support for this position. 43. Equality of opportunity and efficiency in development of agriculture are two goals we might believe a land granting system should achieve. Compare and contrast the extent to which the Seigneurial system, the British land granting practices in the late eighteenth and early nineteenth centuries, and the Dominion Land Act applied to settlement in the Prairies achieved these goals. 44. Discuss the role of agriculture in the economy of New France and describe its place in trade in the New World. 45. Commentators often assumed that the abundance of land resulted in little real poverty and relatively equal social status among settlers. Discuss the extent to which the evidence supports the assumption of equality of opportunity in the Maritimes and in Ontario in the early nineteenth century. 46. Discuss the major tenants of mercantilism and explain how the colonies of New France and Newfoundland met the policy goals of their governments. 47. From 1840-1867 many changes occurred in the transportation system and tariff structure of British North America. Discuss the economic impact of these changes on British North America. 48. Between the beginning of British control of the territories which became Canada to 1850 Britain moved from a policy of mercantilism to a policy of free trade, but the British North American Colonies were free to set their own tariffs. Discuss the changes in British tariff policies, and explain the differences in the tariff policies of the Canadas, New Brunswick and Nova Scotia. 49. Between the beginning of British control of the territories which became Canada to 1850 Britain moved from a policy of mercantilism to a policy of free trade. Explain the impact of British tariff policies on British North American timber and wheat exports. 50. The Reciprocity treaty was implemented in 1855 and ended in 1867. Discuss the provisions of this treaty, the strategies used to ensure American agreement to it. Explain the impact it had on Nova Scotia’s economy. 5 51. Compare and contrast the tariff policies implemented in Ontario and in New Brunswick before Confederation. Explain why the governments of the two provinces chose different tariff policies. Which do you think was better for development? 52. Galt claimed that the tariff changes introduced in Canada in the 1850s were intended to raise needed revenue and were only incidentally protective. Discuss the structure of the tariff schedule imposed and determine if his statement is plausible. Compare the tariff policies of New Brunswick and Nova Scotia before Confederation and explain why those provinces adopted somewhat different policies. 53. The theme of the commercial empire of the St. Lawrence has been used to explain early economic policy in British North America. Describe the second empire of the St. Lawrence and discuss the sense in which this thesis is useful in understanding the transportation and tariff policies implemented in Canada before 1850. 54. Canada has experienced many changes in its own and its trading partners' tariff policies. Describe the changes in British, Canadian and American tariff policies during the nineteenth century and discuss the impact the changes had on the development of staples production and secondary manufacturing in Canada. 55. Over its history Canada has experienced a number of tariff regimes: inclusion within a free trade area established by British mercantilism, adoption of various tariff structures by each province, reciprocity in the mid-19th century and creation of the national policy tariffs in the late 19th century. Describe the differences in these regimes and explain their impact on Canadian economic development, considering whether protection or free trade was the better policy. 56. From 1840-1867 many changes occurred in the transportation system and tariff structure of British North America. Discuss the economic impact of these changes on British North America and consider the extent to which they aided the development of the economy as a whole or they merely benefited a particular interest group. 57. Use the concept of present value to explain why giving free homestead land may result in a misallocation of resources. Do you believe that Canada’s Homestead act resulted in a misallocation of resources in Canada in the late 19th and early 20th century? 58. Discuss the changes in banking institutions, monetary systems and the gold supply in the late 19th century. What impact did they have on the pace of Canadian economic development? 59. In 1966 Chambers and Gordon wrote a paper titled “Primary Products and Economic Growth: An Empirical Measurement”. Outline the argument of this paper and discuss its significance to the evolution of the discipline of 6 Canadian Economic History. 60. Explain the model that Chambers and Gordon use to argue that the settlement of the Canadian prairies had a trivial impact on growth of income per capita in Canada from the 1890s to 1911. What are the strengths and the weakness of this model? 61. Using supply and demand curves, explain the difference between a revenue and a protective tariff. 62. Using supply and demand curves, compare the difference between the impact of a tariff on a competitive industry to the impact on an industry which can be monopolized. 63. Discuss the impact of the tariff of 1879 on the textile industry and on the agricultural implements industry. You should use supply and demand curves in your answer and discuss the relationship between the tariff and the strength of monopolies in these industries. 64. Standard economic theory argues that tariffs hurt an economy by forcing it to shift resources out of industries in which it has a comparative advantage and into industries in which it lacks a comparative advantage. Explain the extent to which this analysis is relevant to Canada during the nineteenth century and discuss the impact of the National Policy tariff on the size of the Canadian economy, the prevalence of monopoly, the level of industrialisation and the degree of national independence of the Canadian economy. 65. MacDonald introduced highly protective tariffs in 1878. Discuss the impact of these tariffs on total gross domestic product, per capita income, and the degree of competition in the Canadian economy. 66. In 1878 Canadians expressed their preference for a highly protective tariff by electing J. A. MacDonald. Using economic analysis, discuss the likely impact of that tariff on the size and the structure of the Canadian economy, as well as on per capita income. 67. During the early nineteenth century, both Upper Canada and Lower Canada invested in a number of canals, but a complete system of canals along the St. Lawrence River was only finished in the 1840s after unification of the two colonies. Explain the benefits of improvements in transportation to an economy and discuss the reasons why the Lower Canadian legislature was less willing to invest in canals along the St. Lawrence than the Upper Canadian legislature. 68. Railroads were the high technology industry of the mid 19th century. Discuss the impact of railroad development on the economy of Canada, considering both the impact of the improvements in transportation offered by the railroad and the impact of the production of rail services themselves. 69. The Canadian government adopted a number of policies in the post7 Confederation period to encourage the settlement of the Canadian prairies. Briefly describe these policies and explain in detail why extensive settlement of the prairies occurred only after 1895. 70. The wheat boom began only in the later 1890s, but policy devised to stimulate settlement in the Canadian prairies had been in place for one to two decades. Describe the policies intended to encourage settlement of the Canadian prairies and explain why settlement did not begin until the very end of the century. 71. Although the Dominion Land Act was passed in 1879 and the Canadian Pacific Railroad was completed into the prairies by 1884, extensive settlement of the West was delayed until the late 1890s. Discuss the reasons for this delay in settlement of the West. 72. The staples thesis has played a key role in the study of the Canadian economy, and wheat has often been assumed to be the ideal staple which was responsible for the very rapid growth in income during the period from the mid 1890s to World War I. Discuss the extent to which wheat production stimulated rapid growth in per capita income, and the extent to which other industries played a crucial role in the dynamic economy of those years. 73. Canada enjoyed a major economic expansion from 1895 to 1913. Discuss the economic factors which led to this prosperity throughout Canada and consider whether the staples theory provides an adequate explanation of the period of growth. 74. The late nineteenth century was a period of dramatic changes in technology and exploitation of new natural resources. Discuss the impact these changes had on the capital intensity of production, on foreign ownership of Canadian industry and on the integration of the Canadian and the American economies. 75. A central fact of the contemporary Canadian economy is the concentration of manufacturing in Ontario and Quebec and the failure of the Maritimes to sustain a manufacturing sector. The staples thesis has been used to explain the emergence of this distribution of economic activity, but the livelihood thesis argues that the distribution of agricultural resources in Canada may have been a determining factor. Explain how the distribution of natural resources across Canada helped to determine this pattern of economic development from the beginnings of settlement into the 1920s. 76. Describe changes in the rates of growth of GDP, investment and exports in the Canadian economy between Confederation and World War I. Explain the role of the development of wheat production on the pattern of growth. What other factors might have contributed to this rapid growth? 77. Maritimers have been known to complain that Confederation was destructive to their economy. The national policy tariff brought in by J. A. 8 MacDonald has been closely associated with Confederation and the construction of a national economy. Discuss the advantages and the disadvantages of the tariff to the Maritime economy and other parts of Canada that relied on exports rather than production for the domestic market. 78. During the late nineteenth century, firms grew dramatically in size and manufacturing became increasingly concentrated in particular urban centres. Explain how changes in economies of scale and transportation costs encouraged these changes. 79. The theme of the Empire of the St. Lawrence has been used to discuss Canadian tariff and transportation policy during the nineteenth century. Briefly describe the concept of the empire of the St. Lawrence and the role of transportation and tariff policies in creating such an empire, and consider the advantages and disadvantages of these policies as a strategy of national economic development. 80. In the late nineteenth and early twentieth century manufacturing displayed a strong tendency to cluster in particular regions of each nation. Discuss the economic forces which tended to lead to the clustering of manufacturing activity and explain the impact of these economic forces on the economic development of the Maritimes and Central Canada. 81. The Great Depression of the 1930s led to a prolonged period of unemployment and poor economic performance. Discuss both the monetary and real events of the 1920s which caused the Depression and discuss the impact of the depression on the Canadian economy of the 1930s. Explain how the experience with the Depression influenced attitudes towards government management of the economy. 82. During the 1920s Central Canada experienced a boom, particularly in manufacturing, while the Maritimes experienced hard economic times. All of Canada suffered from difficult economic circumstances during the 1930s, which ended with rearmament and production for war during World War II. At the end of these decades, Central Canada clearly dominated manufacturing in Canada, while the Maritimes had become a natural resource producing hinterland. Explain why these regions experienced such different fates. 83. During the 1930s the Canadian economy experienced a dramatic decline in output, prices and employment. Discuss the real and the monetary factors which contributed to this decline. 84. Describe the pattern of the business cycle in Canada from the mid 1920's to the 1980's, explaining how this economic experience first led to the adoption of Keynesian economic policies and then led to disillusionment with such policies. 85. Discuss the role of the international monetary system in transmitting the 9 depression of the 1930’s to Canada. 86. Discuss the likelihood of an economic contraction in Canada at the very end of the 1920’s if the international monetary system had been working smoothly. 87. After World War II, Canada experienced an era of strong economic growth with low unemployment and inflation rates. Describe the evolution of monetary policy during that era and explain the determination of the independence of the Bank of Canada and the changes in circumstances which resulted in the end of the boom and the inflation of the 1970s. 88. During the 20th century, the extent of American investment in Canadian resources grew. Discuss and evaluate the reasons which have been given for Canadian dependence on American capital. 89. The pulp and paper industry first developed in the late 19th century. Discuss how both supply and demand forces interacted to lead to the growth of this industry. 90. Describe the trade dispute in the early 20th century between Canada and the United States over the pulp and paper industry. Discuss how the dispute was resolved. Was political action necessary for Canada to become a supplier of newsprint to the United States in the long-run? Explain your answer. 91. Discuss the implications of the development of hydro-electricity for the economic development of Canada. 92. Describe the evolution of the exchange rate system employed in Canada from the late 19th century to the present day, discussing the periods of time when the worked well for Canada and the periods of time when the system caused considerable difficulty for Canada. 10 Readings Assigned in Addition to the Text Book *M.H. Watkins, 'A Staple Theory of Economic Growth', Canadian Journal of Economics and Political Science, 29 (1963), pp. 141-158, Ann M. Carlos & Frank D. Lewis, ‘Indians, the Beaver, and the Bay: The Economics of Depletion in the Lands of the Hudson's Bay Company, 1700-1763’ , Journal of Economic History, 53, 3 (Sept. 1993). *Marvin McInnis, 'Marketable Surpluses in Ontario Farming, 1860' Social Science History, 4 (Fall, 1984), pp. 395-424. Rusty Bitterman, 'The Hierarchy of the Soil: Land and Labour in a 19th Century Cape Breton Community', Acadiensis, 18, pp. 33-55. T.W. Acheson, ‘The Great Merchant and Economic Development in Saint John, 18201850’, Acadiensis, 8 (1979). D.F. Barnett, ‘The Galt Tariff: Incidental or Effective Protection?’ Canadian Journal of Economics, (1976), pp. 389-407. Paul Craven and Tom Traves, 'Canadian Railways as Manufacturers, 1850-1880', Historical Papers, (1983), pp. 254-81. K. H. Norrie, 'The Rate of Settlement of the Canadian Prairies, 1879-1911', Journal of Economic History, 35:2 (June 1975), pp. 410-27. Ian Drummond, 'Growth and Change: a Semi-theoretical Introduction', from his Progress without Planning: The Economic History of Ontario from Confederation to the Second World War, reprinted in Laxer, Gordon, ed. Perspectives on Canadian Economic Development (Toronto, 1991) pp. 2-9. Glen Williams, 'The National Policy Tariffs: Industrial Development through Import Substitution', The Canadian Journal of Economics and Political Science, 30:2 (June, 1979), reprinted in Laxer, Gordon, ed. Perspectives on Canadian Economic Development (Toronto, 1991) pp. 158-92. Edward J. Chambers, and Donald F. Gordon, 'Primary Products and Economic Growth: An Empirical Measurement', The Journal of Political Economy, 74:4 (Aug. 1966), pp. 315-32. Gordon W. Bertram, 'The Relevance of the Wheat Boom in Canadian Economic Growth', Canadian Journal of Economics, vol. 6, no. 4 (Nov. 1973), pp. 545-66. Green and M.C. Urquhart, 'New Estimates of Output Growth in Canada: Measurement and Interpretation', McCalla, Douglas, ed. Perspectives on Canadian Economic History, pp. 182-199. Alexander Dow, 'Finance and Foreign Control in Canadian Base Metal Mining, 191855', McCalla, Douglas, ed. Perspectives on Canadian Economic History, pp. 27083.A.G. David A. Wolfe, 'The Rise and Demise of the Keynesian Era in Canada: Economic Policy, 1930-1982', Modern Canada 1930-1980's edited by Michael S. Cross and Gregory S. Kealey, (Toronto, 1984), pp. 46-78. 11