Bellringer We will have a series of political cartoons to introduce you to various economic systems On a piece of paper, number 1-8 and answer the questions at the top of the cartoons If work was not turned in at the end of class yesterday then turn it in on my chair at the start of class BACKPACKS AND ID’S

1.What can you infer about socialism? 2. Do you feel socialism is a good or bad thing? Explain

3. What can you infer about capitalism? 4. Do you feel capitalism is a good or bad thing? Explain

5. What differences do you see between capitalism and communism? 6. In your opinion, which one seems to be a better system?

7. Why do think you would see this in capitalism?

8. According to the cartoon, do you agree or disagree that capitalism is not working? Explain

What is an Economy? The way a nation makes choices about how it will use its resources to produce and distribute goods and services

Economic Geography Economic Indicators and Systems

Economic Indicators, what are they? They tell how well an economy is performing. What is GDP? It is the total value of all goods and services produced by a nation in a year. (GDP = gross domestic product.) It is the total value of all goods and services produced by a nation in a year. (GDP = gross domestic product.) What is GDP per capita? It reflects the value of goods and services produced in a year in a country by an average person. It reflects the value of goods and services produced in a year in a country by an average person. What are some other economic indicators? Average number of automobiles, Average number of automobiles, Telephones, Telephones, Televisions, Televisions, Or computers per person Or computers per person

GDP – Gross Domestic Product (total value of goods and services produced divided by the total population)

Economic Systems – 4 Types Communist – China Free Enterprise – United States Socialist - Syria Traditional – Java, Indonesia

Four Types of Economic Systems 1.Traditional 2.Free Enterprise 3.Communist 4.Socialist

Bushmen of Kalahari - Africa Berbers of Algeria Village in Bhutan – South Asia Traditional Economies

Economic Decisions: Made by customs and traditions. Production: Based on customs and time- honored methods. New ideas are discouraged Private Property: None (things are owned by the family or village) Trade: Very little outside trade because they only make enough to meet their needs.

2 Main Production Methods For Traditional Economies 1.Subsistence agriculture – growing only enough to feed the farmer and his family. 2.Cottage industries –weave cloth, make furniture and clothes by hand at home. These are mostly found in rural, non-industrial areas

What are these examples of?

What are these an example of?

Free Enterprise = Capitalism = Free Market System Economic Decisions: Based on supply and demand Supply – how many there are Demand – how much consumers will pay Production: New ideas are encouraged Ownership: People own their own goods and property with limited government interference People invest their money in different ways (factories, machines, and land) Profit???

Competition

Two Main Production Methods Commercial Agriculture - Large scale farming to sell; modern and requires less labor Commercial industries – goods are manufactured in factories for sale throughout the country or overseas

Commercial Agriculture

Commercial Industries

Karl Marx

Communism (Command Economy) Economic Decisions: Government makes ALL decisions Ownership: No private property. Government owns everything Cooperation: Cooperation replaces competition Goal: Classless society – equality among workers

Socialism (Mixed Economy) Economic Decisions: Government makes decisions about production, distribution, and use of resources Other decisions are made privately Ownership: Government owns major business Private ownership of everything else Goal: End poverty by a fairer distribution of income among society. People’s basic needs (health care, transportation, education, housing) are met for free or at very low cost.

Economic Systems Command Economy Communism On the far left Market Economy Capitalism On the far right Socialism Left of center but right of communism

Economic Activities

#1 Primary Economic Activities: economic activities which rely directly on natural resources.

Myanmar agriculture rice field Forestry Skorpion Zinc Mine, Namibia In the U.S. only 3% of the labor force.

What 2 types of agriculture would be considered primary economic activities?

Economic Activities #2 Secondary Economic Activities: using raw materials to produce products of greater value.

Food processing

Car manufacturing in India Toy manufacturing in China England Furniture Manufacturing Plant, USA Manufacturing

Petroleum Refining Gold Refining Refining

What 2 types of industries would be considered secondary economic activities?

Economic Activities #3 Tertiary Economic Activities: economic activities which do not use raw materials, but serve others.

Service Industry In the U.S. – 80% of labor force

What are 3 types of tertiary economic activities?

Economic Activities #4 Quaternary Economic Activities: economic activities which focus on information.

What are 2 types of quaternary economic activities?

Global Trade (Globalization) Exports: goods that are sent out of a country Imports: goods that are brought into a country

Trade Routes Impacted by technology

Industrial Development

Industrialized Countries

Development Indicators Economic Activity Crime Levels Political Stability GDP/GNPWomen employment Average Income % of Higher Education graduates Age Range of Pop Standard of Water pipes Water Access Telephone Communication # of TVs per person # of computers per person Electricity consumption Health Care Calories per person per day Death/Birth Ratio Life expectancy Ratio of doctors per person