ECONOMIC SYSTEMS AND ACTIVITIES

*PRIMARY ECONOMIC ACTIVITY TAKES SOMETHING DIRECTLY FROM THE EARTH

*SECONDARY ECONOMIC ACTIVITY MAKES SOMETHING MORE USEFUL OR VALUABLE

*TERTIARY ECONOMIC ACTIVITY PROVIDES SERVICES

*QUATERNARY ECONOMIC ACTIVITY PROCESSES AND DISTRIBUTES INFORMATION

PROVIDES SERVICES (INTANGIBLES) RATHER THAN GOODS (TANGIBLES) *SERVICE INDUSTRY PROVIDES SERVICES (INTANGIBLES) RATHER THAN GOODS (TANGIBLES)

*SUBSISTENCE AGRICULTURE FARMING IN WHICH JUST ENOUGH IS PRODUCED TO MEET NEEDS – VERY LITTLE EXTRA TO SELL OR TRADE (GROW TO EAT TO LIVE)

*COMMERCIAL AGRICULTURE LARGE SCALE FARMING WHERE FOOD IS GROWN TO SELL

LARGE SCALE PRODUCTION OF GOODS TO SELL *COMMERCIAL INDUSTRY LARGE SCALE PRODUCTION OF GOODS TO SELL

SMALL SCALE INDUSTRY BASED IN THE HOME *COTTAGE INDUSTRY SMALL SCALE INDUSTRY BASED IN THE HOME

*TECHNOLOGICAL INNOVATION NEW, ADVANCED PRODUCT OR IDEA BASED ON MODERN SCIENCE

*INFRASTRUCTURE SYSTEM OF ROADS, PORTS, UTILITIES, ETC. NEEDED FOR A SUCCESSFUL COUNTRY (THE BONES OF A COUNTRY)

MACHINE POWER REPLACES ANIMAL POWER *INDUSTRIALIZATION MACHINE POWER REPLACES ANIMAL POWER

*LESS DEVELOPED COUNTRIES COUNTRIES THAT ARE NOT ECONOMICALLY PRODUCTIVE AND HAVE A LOW STANDARD OF LIVING

*NEWLY INDUSTRIALIZED COUNTRIES A FEW MODERN CITIES AND MANY POOR RURAL AREAS

*MORE DEVELOPED COUNTRIES COUNTRIES WITH A HIGH STANDARD OF LIVING AND A HIGH LEVEL OF INDUSTRIALIZATION

PERCENTAGE OF PEOPLE WHO CAN READ AND WRITE *LITERACY RATE PERCENTAGE OF PEOPLE WHO CAN READ AND WRITE

*LIFE EXPECTANCY AVERAGE NUMBER OF YEARS A PERSON BORN IN A CERTAIN YEAR IS EXPECTED TO LIVE

*INFANT MORTALITY RATE NUMBER OF BABIES WHO DIE BEFORE AGE ONE FOR EVERY 1,000 LIVE BIRTHS

MEASURE OF QUALITY OF LIFE (INCOME, EDUCATION, FOOD, ETC.) *STANDARD OF LIVING MEASURE OF QUALITY OF LIFE (INCOME, EDUCATION, FOOD, ETC.)

*HUMAN DEVELOPMENT INDEX (HDI) RANKING OF COUNTRIES ACCORDING TO THEIR STANDARD OF LIVING

*GROSS DOMESTIC PRODUCT TOTAL VALUE OF GOODS AND SERVICES PRODUCED WITHIN A COUNTRY (GDP) *PER CAPITA AVERAGE PER PERSON *GROSS NATIONAL PRODUCT TOTAL VALUE OF GOODS AND SERVICES PRODUCED BY A COUNTRY (ANYWHERE) (GNP)

*SCARCE DEFICIENT IN QUANTITY OR NUMBER; NOT ENOUGH

PAPER MONEY/COINS USED TO EXCHANGE FOR GOODS/SERVICES *CURRENCY PAPER MONEY/COINS USED TO EXCHANGE FOR GOODS/SERVICES

*CAPITAL GOODS (SOMETHING) USED TO PRODUCE OTHER GOODS EXAMPLES: MONEY, MACHINERY, PEOPLE

DIFFERENCE BETWEEN THE VALUE OF A COUNTRY’S IMPORTS AND EXPORTS *BALANCE OF TRADE DIFFERENCE BETWEEN THE VALUE OF A COUNTRY’S IMPORTS AND EXPORTS

* TRADE SURPLUS VALUE OF EXPORTS IS GREATER THAN VALUE OF IMPORTS (MAKING MORE MONEY THAN YOU ARE PAYING)

*TRADE DEFICIT VALUE OF IMPORTS IS GREATER THAN VALUE OF EXPORTS (PAYING MORE MONEY THAN YOU ARE MAKING)

*TARIFF *QUOTA TAX ON IMPORTS/EXPORTS LIMIT ON THE AMOUNT OF A PRODUCT THAT CAN BE IMPORTED

*IMPORTS *EXPORTS PRODUCTS BOUGHT BY A COUNTRY FROM OTHER COUNTRIES PRODUCTS SOLD BY A COUNTRY TO OTHER COUNTRIES

REGION WHERE COUNTRIES AGREE TO REDUCE OR ELIMINATE TRADE BARRIERS *FREE TRADE ZONE REGION WHERE COUNTRIES AGREE TO REDUCE OR ELIMINATE TRADE BARRIERS

PEOPLE CHOOSE WHAT TO BUY AND SELL SUPPLY AND DEMAND *MARKET ECONOMY PEOPLE CHOOSE WHAT TO BUY AND SELL SUPPLY AND DEMAND

BUSINESSES, INDUSTRIES, AND RESOURCES ARE PRIVATELY OWNED *CAPITALISM BUSINESSES, INDUSTRIES, AND RESOURCES ARE PRIVATELY OWNED

*FREE ENTERPRISE PEOPLE OWN THE MEANS OF PRODUCING AND DISTRIBUTING GOODS AND SERVICES; COMPETITION DETERMINES PRICES; PEOPLE HAVE THE RIGHT TO SUCCEED OR FAIL

BASED ON CULTURAL TRADITIONS; OFTEN SUBSISTENCE ECONOMY *TRADITIONAL ECONOMY BASED ON CULTURAL TRADITIONS; OFTEN SUBSISTENCE ECONOMY

*COMMAND ECONOMY GOVERNMENT OWNS AND CONTROLS MOST PRODUCTION AND DISTRIBUTION (USUALLY ASSOCIATED WITH COMMUNISM)

*SOCIALISM REDISTRIBUTES WEALTH GOVERNMENT OWNS AND CONTROLS MEANS OF PRODUCING GOODS