Economic Activity

Types of Economic Activities

Primary Economic Activity Fishing- tuna fishing Forestry Mining/drilling Agriculture (based on land and climate) 50% of less developed countries 15-20% newly industrialized <8% of developed countries Commercial Agriculture: produced to sell Subsistence Ag.: provide for your family

Primary Economic Activity cont’d… Subsistence Farming Grow enough for family or village Commercial Farming Use modern techniques Only small # of workers needed Found in all countries Plantations- found in newly industrialized Who owns most plantations? In less developed countries, large corporations, foreign investors owns the plantations

Secondary Economic Activity Manufacturing- Industry Takes raw material and turns into a finished products Tuna into Canned Tuna What are some examples of manufacturing in the United States? In what regions? Cities?

Tertiary Economic Activity The Service Industries Transportation Sales Advertising Government-some Health Care Banking Education- some

Quaternary Eco Activities Collecting, processing and distributing information government, culture, libraries, scientific research, education, and information technology.

Stages of Economic Activity Developed Country Modern Technology Mostly Tertiary Eco. Activities (Service) Well developed economy GDP per Capita: USA $46,000 Has sustainable development Outsourced manuf. when costs can be cut. Less Developed Limited modern technology Dependent on developed countries for manufactured goods. GDP per capita: ~$1000 Mostly primary and secondary eco. activities Newly Industrialized Mexico $15,600 (2012) 13% Agric

Zimbabwe- What stage am I? $600.00 GDP per capita 66% Agric. 38% urban 3.8 Fertility rate

Know these front and backwards!!! Primary- Agriculture Secondary- Manufacturing (industry) Tertiary- Service Quaternary- data

USA 1.1% Agriculture (primary) 22.1 % Manufacturing 76.8% Service (Tertiary) Can U say “Sustainable development” Hmmm Monaco 95% service!!! Mexico(Newly Indust) 13% Agric, 24% Manuf., 63% Service Bangladesh 18% Agric,28% Manuf., 52% Service Zimbabwe(less developed) 66% Agric, 10% manu., 24% Service

Primary What are some examples of raw materials in your community? What kind of finished product can be made from this?

Standard of Living (Daily Life)- look at all these things Life expectancy Infant mortality rate GDP per capita # of people per car Energy consumption Literacy rate

Traditional Economy cottage industry

Human Resources Capital Resources Workers- a country’s greatest resource! YOU! Capital Resources Machines Money (Investments) Buildings Compare a contractor with a hammer and nail to one with lumber, a toolset and backhoe. Which one represents the less developed country? Which one represents the developed country?

Supply and Demand As the price goes up, what happens to the demand? Real life- As the price is reduced, what happens to the supply of goods?

Economic Systems answer these questions… What will be produced? How much will be produced? How will it be distributed? What will it cost?

Total government control Economic Spectrum Total government control No government

Economic Spectrum No government Strong Government Command Ec Communism Karl Marx Gov’t regulates all Central planners Socialism/ Mixed Free-Market Capitalism based on profit private ownership entrepreneurship

Matching: Communism, socialism, capitalism, traditional Consumers make the decisions Welfare state Free doctors visit CNN, Fox, Comcast, Ixfinity, CBS, ABC, NBC Clay pots from hand Profit is motive for doing well Community farms Reebok, Nike, Addidas,… No social classes Follow parents line of work 93Q, the Eagle, 104 KRBE, 740 Talk Radio,