Economics Strand Review EOC Review

Primary Economic Sector Primary Activities involve gathering raw materials such as timber for immediate use or to use in the making of a final product Predominate sector in less developed regions Includes agriculture, hunting-gathering, mining, fishing, farming, ranching, timber, etc.

Secondary Economic Sector Secondary Activities involve adding value to materials by changing their form. Predominately located in more developed regions than primary activities Includes manufacturing automobiles, refining petroleum, construction, shipbuilding, etc.

Tertiary Economic Sector Tertiary Activities involve providing business or professional services. Predominately located in more developed to highly developed regions Includes service industry = salespeople, teachers, doctors, banking, tourism, etc.

Quaternary Economic Sector Quaternary Activities involve highly intellectual positions Predominately located in highly developed regions Provide information, management, and research services by highly-trained persons Includes libraries, college professors, culture, government, etc.

Levels of Development (1) The more developed a region is, the more variety of economic activity Less Developed – high poverty, high birth rate, high infant mortality rate, low literacy, poor health care, low life expectancy, low GNP/GDP etc. Example: several countries in Africa south of Sahara/north of South Africa

Levels of Development (2) More Developed (compared to less developed) – less poverty, lower birth rate, lower infant mortality rate, increased literacy, better health care, higher life expectancy, increased GNP/GDP etc. Examples: China, Jordan, South American countries

Levels of Development (3) Highly Developed - low poverty, low birth rate, low infant mortality rate, high literacy, good health care, high life expectancy, high GNP/GDP etc. Examples: USA, Canada, Western European countries, Japan

Industrialization Farming machinery has industrialized nations –Less subsistence farming (growing just enough for family’s basic needs) –Less farm workers – migrated to other places for job opportunities –Led to more market-oriented agriculture

Infrastructure Basic support systems needed to keep an economy going Includes power, communications, transportation, water, sanitation, and education systems. The more sophisticated the infrastructure, the more developed the country.

Cottage vs. Commercial Industry Cottage IndustryCommercial Industry Home-basedFactory-based Unique productsMass-produced products Small-scale productionLarge-scale production

Small-Scale Agriculture Examples Kibbutz – communal farming in Israel Hippie Communes – existed in the 60s Subsistence Farming Market-oriented Agriculture Examples Dole Pineapple plantations Chiquita Banana plantations

Traditional Economy Goods and services are traded without exchanging money. Also called “barter.” Families produce food through subsistence farming. Sons typically learn the same type of jobs their fathers work in. Examples –Tribes of the Amazon rain forest –The Amish culture of the United States

Command Economy Production of goods and services is determined by a central government, which usually owns the means of production. Production does not necessarily reflect the consumer demand. Also called a planned economy. Examples –North Korea –Cuba

Market Economy Production of goods and services is determined by the demand from consumers. Also called a demand economy or capitalism. Example – United States

Mixed Economy A combination of command and market economies provides goods and services so that all people will benefit. Examples: – United States – Canada – UK – Japan