Economic Geography

Economic Systems Traditional Economy (barter) – Goods and Services are traded without exchanging money Command Economy – Production of goods and services is determined by a central government (communism, socialism) Market Economy – Production of goods and services is determined by the demand from consumers (demand, capitalism) Mixed Economy – A combination of command and market economies to provide goods and services so that all people will benefit

The Economic Scale MarketMixedCommand

Levels of Economic Activities

Primary – Gathering and selling raw materials (selling trees)

Levels of Economic Activities Secondary – Adding value to raw materials by changing (manufacturing) their form (lumber, paper, furniture)

Levels of Economic Activities Tertiary – Selling services (driving the lumber from the mill to the customer)

Levels of Economic Activities Quaternary – Provide information management, and research services by highly trained persons

Measuring Economic Development Per capita income – The average amount of money earned by each person in a political unit Gross National Product – The total value of goods and services produced by a country in a given time Gross Domestic Product – The total value of all goods and services produced WITHIN a country in a given time.