Economic Geography

I. Economic Systems A. Traditional - Barter and trade. (1 cow for 5 pigs?) B. Communism - Economy determined by the government (command). The government owns all the means of production (the factories and the farms).

C. Free Enterprise - Economy determined by consumers competition (free market or capitalism). D. Mixed - Most countries have a mix of command and market economies. Sometimes called Socialism (in between free enterprise and communism).

Economic Spectrum Pure Communism, Pure Free Enterprise Sometimes called: Planned Economy or Command Economy Sometimes called: Free Market, Market Economy, or Capitalism Mixed Economy

Economic Spectrum Pure Communism, Pure Free Enterprise Mixed Economy Technically Socialism is the Command Economy However in America many politicians call the Mixed Economy Socialist

Economic Spectrum Pure Communism, Pure Free Enterprise Mixed Economy Cuba & North Korea France & Sweden Germany United Kingdom United States Singapore

Economic Spectrum Pure Communism, Pure Free Enterprise Mixed Economy United StatesDemocrats Republicans

II. Levels of Economic Activity A. Primary - gathering raw materials. Mining

Strip Mining

Farming

Lumber

B. Secondary - Making a product.

Lumber Industry – Primary Activity Furniture Industry –Secondary Activity Secondary activities take place in: –Factories (Industrial) –Homes or workshops (cottage industries)

Mining Industry (metals) - Primary Activity Automobile Industry - Secondary Activity

C. Tertiary - Business or professional services. *restaurants *teachers *Banks *stores *doctors

D. Quaternary - provide information, management and research by highly trained persons. *business manager *research scientist

III. Natural Resources - Materials taken from the earth. A. Renewable (Inexhaustible Energy) - Resources that can be replaced.

Renewable Resources include; *Wind *Sun (solar) *Water (hydro) *Geothermal *Timber

Geothermal Energy

B. Non-Renewable - Resources that can not be replaced. Examples include; *oil *coal *natural gas *minerals

IV. Infrastructure - A countries support system. Includes: 1. roads 2. water supply 3. power supply 4. education system

Infrastructure

Sewer system

V. Measuring Economic Development A. per capita income - average amount of money earned by each person in a country. -U.S. - $46,900* - Japan - $34,000* - China - $3,000* - Haiti - $1,300* 2008 estimate (not in PPP**) ** PPP = Purchasing Power Parity

Per Capita Income

B. Gross Domestic Product - Total value of goods and services produced by a country. *U.S. - $14.26 trillion (world’s largest economy) (that’s $14,260,000,000,000) *China - $7.97 trillion (2 nd largest) *Japan - $4.92 trillion (3 rd largest)

GDP - Gross Domestic Product in trillions

C. Development Levels 1. More developed Countries – have a higher per capita income and higher standard of living 2. Less developed Countries – have a lower per capita income and lower standard of living

3. Standard of Living – The quality of life in a country. More Developed Countries (MDCs) Less Developed Countries (LDCs) Low Infant Mortality Rate High (bad) Infant Mortality Rate High Life ExpectancyLow Life Expectancy High Literacy RateLow Literacy Rate Industrial or Service Sector Jobs Mostly Agricultural Jobs

Standard of Living - Example More Developed United States Less Developed Haiti Per Capita Income $46,900$1,300 Infant Mortality Rate (per 1,000 live births) Life Expectancy years60.78 years Literacy Rate 99%52.9% Economic Sector ServicesAgricultural

C. Development Levels 3. Newly industrialized Countries – are in between More Developed and Less Developed Countries in per capita income and higher standard of living