p in Western World

Economic Activity (What people in an area do to earn a living) Primary Industry- activities that directly involve natural resource (like farming) Secondary Industry- industry that turns raw materials into finished products (like how sawmills turn trees into lumber) Tertiary Industry- industry that handles goods that are ready to be sold to the consumer (like Dick’s Sporting Goods or Target) Quaternary Industry- industry that works with information instead of goods ( like researchers, managers, principals, teachers) *See p. 93 in your book for visuals

Developed vs. Developing What is the difference? Developed Country- has a strong secondary, tertiary, and quaternary industry (The U.S., Great Britain, France, Germany…) Developing Country- often work in farming or other primary industries (South Korea, Mexico…)

Economic Indicators Gross Domestic Product (GDP)- Value of all goods and services provided within a country in a single year. *See p. 94 in your book for a visual Population Health Care Education and Literacy Rate Telecommunication Systems

Types of Economic Systems Market Economy- Business owners and consumers make the decision on what to make, sell, and buy. Command Economy- Government controls and owns all the factors of production (usually in a communist system) Traditional Economy- Based on the customs and traditions passed down from ancestors (People grow their own food and make their own goods. Trade often takes place through bartering or exchange of goods without the use of money.)