Economics 342 Study Guide Questions Midterm, Feb. 13, 2004 1. “One of the most enduring mythologies of rural life in the temperate regions of North America has centered on the freedom resulting from easy access to land.” (Bittermann, p. 34) Discuss the relative importance of the major economic activities in the Maritimes before Confederation and discuss the extent to which individuals could rely on their own farms to provide an independent livelihood. (See Bittermann article.) 2. Access to abundant natural resources was a motive for many settlers to the Maritimes. Discuss the allocation of agricultural land in the Maritimes, discussing the factors determining whether people had access to the natural resources. 3. Discuss the impact that the National Policy tariffs had on the Maritime economy from their imposition in 1879 into the 1920s. (See Acheson article.) 4. The Maritimes have far less high quality farm land than Central Canada. Using the livelihood model, explain how this resource endowment influenced the extent of settlement in the region. What were the implications of the amount of settlement to the future development of the region? 5. The staples thesis argues that the nature of the linkages created by a staple influences the extent and nature of economic development of a region. Use the staples thesis to explain the impact of the [fishery or forestry or coal] on the development of the economy of Atlantic Canada. 6. The staples thesis emphasizes the role of external demand and demand derived from the linkages of staples production on economic development while the livelihood thesis emphasizes the capacity to produce. Using supply and demand diagrams, discuss the factors which determined whether a region exported a particular commodity, imported a particular commodity or produced it for its own market without imports or exports. 7. At the time of Confederation, products were sometimes produced through small scale artisan or handicraft methods and sometimes through larger scale factory production. Discuss the importance of income per square mile in determining whether a particular handicraft or factory production prevailed in a particular commodity and location. 8. Many Maritimers believe that there was once a Golden Age of wood, wind and sail when the Maritime economy was at least as prosperous as any other region of Canada. Discuss whether the evidence about incomes, agriculture, and manufacturing efficiency at Confederation supports this belief. (See Inwood articles.) 9. Today, average incomes are lower in the Maritime provinces than elsewhere in Canada. A similar situation existed in 1870. Describe the nature of differences in income at the time of Confederation and discuss the role of agricultural incomes in creating these differences. (See Inwood articles.) 10. Compare and contrast the efficiency of manufacturing in the Maritimes to that in Central Canada in the last quarter of the 19th century and explain some of the reasons for the differences in the two regions. (See Inwood and Gerriets.) 11. Use the staples thesis to explain the impact the staples of fish, timber and coal had on the economy of the Maritimes. Which staple seems to you to have been most beneficial to the region? Explain your answer. 12. Explain why the Maritime region developed a shipbuilding and a shipping industry in the late 19th century. 13. Shipping owning was a risky and unprofitable business that discouraged diversification of the Maritime economy. Indicate whether you believe this assertion to be true or false and support your belief by discussing the nature of ship owning in the Maritimes in the late 19th century. 14. By the 20th century, the Maritimes ceased to have an important shipbuilding and shipowning industries. Discuss the reasons for this change. 15. Harold Innis argued that the Maritimes failed to adapt as the technologies of wind, wood and sail were replaced by steam and steel. Referring to Acheson’s article, discuss whether or not the Maritimes responded to the new industrial technologies of the late 19th and early 20th centuries.