Economic Activities

Primary ActivitiesSecondary Activities Tertiary ActivitiesQuaternary Activities

Primary Activities Use natural resources directly Location: at the site of the natural resource being used Examples: wheat farming, iron mining

Secondary Activities Use raw materials to produce or manufacture something new Location: close to the resource or close to the market for the finished product Examples: processing wheat into flour, manufacturing steel

Tertiary Activities Provide services to people and businesses Location: usually near customers Examples: bakeries, car dealerships

Quaternary Activities Process and distribute information Location: anywhere Examples: plant-genetics research, automotive engineering

Make Your Own Example Milk Fish Petroleum Wood Cotton Other

EconomyMotivatorDescriptionLocationDef. Create Chart below

Economic Systems The method used by a society to produce and distribute goods and services

Traditional Economy

Traditional Motivator Survival

Traditional Description People make goods for themselves or their families with little surplus based on habits, customs, or rituals

Traditional Location Poor countries and rural areas Limited today Inuit of northern Canada, Masai tribe

Traditional Definitions Subsistence Agriculture – producing just enough food for a family or village to survive Cottage Industry – small scale industries based in the home

Market Economy

Market Motivator Profit

Market Description People freely choose what to buy or sell

Market Location No country has a pure market economy. US and others like it have a mixed economy.

Market Definition Free enterprise/capitalism – the idea that private individuals or groups have the right to own property or businesses and make a profit with only limited government interference.

Market Definition Mixed economy – the government supports and regulates free enterprise through decisions that affect the marketplace

Command Economy

Command Motivator Government regulations

Command Description The government establishes products, locations, and prices

Command Location Communist countries – Cuba, North Korea

Command Definition Communism – an economic and political system in which the government owns or controls almost all the means of production.

Socialism – –equal distribution of wealth; –all major production decisions are controlled; –Public ownership of most land, factories, and other means of production –Politically some are democracies (elect leaders)

Development HDI- Human Development Index More Developed Country (MDC)- country that has high levels of human development, economy focused on tertiary and quaternary sectors

Newly Industrialized Country (NIC)- Country experiencing an industrial revolution. Economy focused in secondary sector. High population growth. Standard of living is improving. India-

Less Developed Country (LDC)- country has not experienced and industrial revolution. High Birth rate and death rate. Focused in primary sector of the economy Democratic Republic of the Congo