Warm - Up List 4 of the 7 continents and 3 of the five oceans.

Money Makes the World Go Around Economic Geography Money Makes the World Go Around

Objective I will be able to understand the basic concepts of different economies and analyze their differences.

Economic Activity Economic Activity - The production of goods and services Three different sectors Gaining raw materials (Primary) 2. Using raw materials to create things (Secondary) 3. Providing services (Tertiary)

Factors of Production There are four factors of production. The more a country has of these four factors, the better and stronger their economy usually is. These Factors are…

Land Land is where a country obtains it’s natural resources, or raw materials. Countries with a lot of natural resources typically have better economies because they can produce more good. Countries with a lot of land typically have more natural resources than countries with less.

Labor Labor is made up of the people in the country who work , from mining coal to selling cars. A larger labor force helps a country produce more goods and services. A well educated labor force helps create goods and services that have higher value (for example: making a wagon versus making a car)

Capital Capital is the wealth and infrastructure of a country. Wealth includes the money that can be spent making goods or investing in research. Infrastructure includes ways of producing and distributing goods or moving and supporting the labor force.

Entrepreneurship Entrepreneurship describes the creativity and risk that are needed to develop new goods and services. Entrepreneurship can involve one individual or many. It can also mean the starting of a single business or the development of brand new things to buy.

Economic Systems There are four basic kinds of economic systems (or how a country makes its money). Traditional Economy – People trade goods and services for other goods and services (no money!) Free enterprise – People privately own businesses which sell products they choose and compete with other similar businesses Vs

Economic Systems 3. Command economy – The government owns most parts of the economy and decides who will sell and produce what 4. Mixed economy – An economy that has elements of both free enterprise and command

Economic Indicators There are many things that experts use to judge a country’s economy. Some factors can include average income, literacy rates, and life expectancy. One of the main indicators of a country’s economic success is it’s Gross Domestic Product, or the total value of all goods and services a country produces.

Gross Domestic Product (GDP) Countries with a high GDP are more developed and tend to have economic activity that revolves around the service sector. Countries with a low GDP are less developed and tend to have economic activity that revolves around gathering resources or producing goods.

Group Practice With your group, complete the “Compare and Contrast” worksheet using your textbook page and the notes you have completed.

Independent Practice Independently, complete the vocabulary worksheet and economic map. What you do not complete will be done for homework.

Exit Ticket What are the three levels of Economic Activity?