1. Economics What Does It Mean?

2. Economics The ways in which people use the resources they have to get the goods and services they need and want

3. What are resources?

4. What makes a Nation Wealthy?

5. Is It Money? What is the idea of money? What does money represent?

6. What is Money? A system of currency which is used to facilitate the exchange of goods and services Value = Worth (The usefulness of something) Labor and Production

7. Wealth How does a person like Bill Gates accumulate wealth? What helped him get to where he is today? The richest man in the world worth $53 Billion!

8. Education

9. A Stable and Consistent Government

10. Access To Jobs

11. Abundance of Natural Resources

12. Access to preventive medicine and state-of-the-art treatment

13. Why are some countries Poor?

14. Lack and mismanagement of essential resources result in poverty and unstable societies

15. How Do Countries Create Wealth? Economic Levels

16. In 1906, approximately 50% of population were farmers. Today Only 2-3% of population farms. Subsistence farming allows a farmer to support his family Primary Economic Level Activity

17. Primary Economic Activity = Using The Land Farming Mining

18. Secondary Economic Level: Manufacturing

19. Secondary Economic Activity = Making Stuff

20. Tertiary Economic Activity: Service, Finance, Medicine

21. High Standard vs. Low Standards of Living What is a Standard? A Measurement Abundant products and services What do we measure?

22. High Standards

23. Gross Domestic Product (GDP) Economic measure of the total value of goods and services produced by a country in a year. Usually measured Per Capita (by person) Total GDP/population = Per Capita

24. Less Developed Countries L.D.C. Least Developed Countries are countries which according to the United Nations exhibit the lowest indicators of socioeconomic development.countriesUnited Nationssocioeconomicdevelopment A country is classified as a Least Developed Country if it meets three criteria based on: low-income (GDP per capita of less than US $750) human resource weakness (based on indicators of nutrition, health, education and adult literacy) and economic vulnerability (based on instability of agricultural production, instability of exports of goods and services, economic importance of non-traditional activities, merchandise export concentration, and handicap of economic smallness, and the percentage of population displaced by natural disasters) Countries may "graduate" out of the LDC classification when indicators exceed these criteria. The classification currently applies to around 50 countries. As of 2006As of 2006, the least developed country in the world is East Timor.East Timor http://www.mrdowling.com/800gdppercapita.html http://www.worldbank.org/depweb/english/modules/economic/gnp/index.html

25. Some other facts of LDCs Fewer factories Poor Populations Manufacturing for local market use Most wealth is made from RAW Natural Resources Money made is used to purchase manufactured products creating an uneven trade balance

26. Global Status First, Second and Third World (outdated) Primarily based on political system: First World = Developed Second World = Command Economies Third World = Underdeveloped

27. Capitalist Economy Resources, industry, businesses owned by private individuals/corporations Free Enterprise = Supply and Demand determines =

28. Command Economy Prices of goods/services dictated by Government (China, Vietnam, Cuba, Ex- Soviet Union) Communism =

29. Traditional Economy Based primarily on farms (subsistence) Mostly Less Developed Countries fall under this category Unstable government