BELLRINGER READ AND ANALYZE: page 94 “Types of Economic Systems” 1. Who owns or controls resources in each type of system?

Chapter 3: The World’s People Section 3: Resources and World Trade I. Natural Resources A. Natural resources are products of the earth that people use to meet their needs. B. Renewable resources cannot be used up. They can be replaced naturally or grown again. People are trying to develop new ways of using renewable resources such as solar energy.

C. Nonrenewable resources are provided by the earth in limited supply. These resources, such as fossil fuels and nuclear energy, cannot be replaced.

II. Economic Systems A.A country’s economic system sets rules for deciding what goods and services will be produced, how they will be produced, and who will receive them. B. In traditional economies, economic decisions are based on customs passed down through the generations.

C. In command economies, the government makes all economic decisions. D. In market economies, which are based on “free enterprise,” individuals and businesses make their own decisions.

E. Most nations have mixed economies. For example, individuals may have freedom in many areas, whereas government regulations may apply to others. WHAT TYPE OF ECONOMY DOES THE UNITED STATES HAVE?

III. World Trade A. Resources are not distributed evenly around the world. This uneven distribution affects the economies of the world’s countries and can lead to conflict.

B. Many countries specialize in making certain types of goods or foods that are best suited to their resources. When countries cannot use all they produce, they export what they do not need to other countries. When they cannot produce as much as they need of a good, they may import that item.

C. A tax that is added to the price of goods that are imported is known as a tariff. D. Governments sometimes place a quota, or number limit, on how many items of a particular product can be imported from a particular country.

E. Free trade means taking down trade barriers so that goods flow freely among countries.

IV. Differences in Development A. Countries that have a great deal of manufacturing are called developed countries. B. Countries that are working toward industrialization and often practice subsistence farming are known as developing countries.

C. Industry typically makes more money than agriculture.

EXIT STRATEGY SMART board work List three examples of each type of resource Renewable Nonrenewable Resources Resources