1. Economic Geography
Chapter 4

2. What is an Economic System?
defined: the way people produce and exchange goods and services

3. 4 Basic Types of Economic Systems
Traditional
Goods and services are traded without money; barter system
Command
Government-controlled production and pricing
Market
Supply and demand, market economy
Mixed
Combination of command and market

4. 4 Levels of Economic Activity
Primary
Gather raw materials
Secondary
Adding value to raw materials by changing their form
Tertiary
Service industry
Quaternary
Research, management, info tech

5. Resources Renewable Non-renewable Inexhaustible
Replace thru natural processes
Trees, fish
Non-renewable
Once removed from the ground, they do not replenish
Metals, petroleum, gemstones
Inexhaustible
Planetary processes used for power
Sunlight, wind, geothermal

6. Economic Support Systems
Infrastructure
Defined: basic support systems needed to keep an economy going, includes –
Power (electricity)
Communications (telephone, internet)
Transportation (roads, mass transit)
Water (supply to support population)
Sanitation (sewage, trash collection)
Education systems (K-12 schools, colleges)

7. Per Capita Income, GNP and GDP
Average amount of $ earned by each working person in a political unit
GNP
total value of all goods and services produced BY a country over a period of a year or other specified period of time (includes products made outside of USA)
GDP
total value of all goods and services produced WITHIN a country over a period of a year of other specified period of time (only in US borders)

8. Economic Development Developing Nations Developed Nations
Low GDP
Limited at all levels of economic activities
Lack industrial base
Struggle to meet citizen’s basic needs
Developed Nations
High per capita income
Varied economy
Lots of quaternary activity
Highly Developed Nations
Western Europe, Japan, Canada, USA