1. Economic Geography

2. Economy
Consists of the production and exchange of goods and services among a group of people
2. Operate at local, regional, national, and international level

3. B. Types of economic systems
1. Traditional economy
a. goods and services are traded without exchanging money
b. also called a barter economy

4. 2. Communist economic system
a. production of goods and services is determined by a central government, which usually owns the means of production
b. production does not necessarily reflect consumer demand
c. Also called a planned economy
d. example: former Soviet Union
(Communist Government)

5. 3. Free Enterprise Economy
a. production of goods and services is determined by the demand from consumers
b. also called market economy
c. example:
United States

6. 4. Socialist Economy
a. combination of Communist and Free Enterprise economies (actually any combination
b. example:
Europe

7. Economic Spectrum Mixed Economy Pure Communism, Pure Free Enterprise
Sometimes called:
Planned Economy or Command Economy
Sometimes called:
Free Market, Market Economy,
or Capitalism

8. Economic Spectrum Mixed Economy Pure Communism, Pure Free Enterprise
Singapore
Cuba &
North Korea
France & Sweden
United Kingdom
United States
Germany

9. The world’s population today is approximately 6 billion!

10. C. Levels of economic activity
1. Every business operates at one of four economic levels
a. these levels describe how material is gathered and processed into goods and services, and how they are delivered to customers

11. 2. The four levels of economic activity
a. primary activities
(1) involve gathering raw materials
(2) example:
gathering timber

12. MINING

13. Strip Mining

14. Farming

15. Lumber

16. b. secondary activities
involve adding value to materials by changing their form
**MAKING A PRODUCT!**
2 example: manufacturing automobiles

17. Primary – Milking the Cow
Secondary - Making the cheese

18. Lumber Industry
Primary Activity
Furniture Industry
Secondary Activity

19. Mining Industry (metals) - Primary Activity
Automobile Industry - Secondary Activity

20. C. Tertiary Activities
Involve providing business or professional services.
Example: salespeople, teachers, or doctors

21. d. quaternary activities
1. provide information, management, and research services by highly trained persons
2. example:
scientists

22. D. Natural resources
1. Materials on or in the earth – such as trees, fish, or coal – that have economic value
2. They only become resources when society has the technology and ability to transform them into goods

23. 3. Three basic types of natural resources
a. renewable
(1) can be replaced through natural process
(2) examples:
trees and seafood

24. Renewable Resources include;
*Wind
*Sun (solar)
*Water (hydro)
*Geothermal
*Timber

25. b. non-renewable
(1) cannot be replaced once they have been removed from the ground
(2) examples: gold,
silver, petroleum,
natural gas, coal

26. c. inexhaustible energy sources
(1) unlimited quantity
(2) used for producing power
(3) include sunlight, winds, tides

27. E. Infrastructure
1. Consists of the basic support systems needed to keep an economy going
2. Includes power, communications, transportation, water, sanitation, and education systems

28. Infrastructure

29. Infrastructure
Sewer system

30. F. Measuring economic development Per capita income
3. The more sophisticated the infrastructure, the more developed the country
F. Measuring economic development
Per capita income
Average amount of money earned by each person in a political unit such as a country
-U.S. - $46,900*
- Japan - $34,000*
- China - $3,000*
- Haiti - $1,300*
* 2008 estimate

31. Per Capita Income

32. Gross national product (GNP)
a. total value of all goods and services produced by a country over a year
b. reflects value of goods or services produced in one country by a company based in another country

33. *U.S. - $14.26 trillion (world’s largest economy)
(that’s $14,260,000,000,000)
*China - $7.97 trillion (2nd largest)
*Japan - $4.92 trillion (3rd largest)

34. 3. Gross domestic product (GDP)
a. total value of all goods and services produced within a country over a year

35. GDP - Gross Domestic Product in trillions

36. G. Development levels
1. Developing nations (less developed)
a. nations that have a low GDP and limited development on all levels of economic activity

37. 2. Developed nations (More Developed)
a. countries with a high per capita income and varied economy
b. economy has quaternary activities such as computer software development

38. C. Development Levels
1. More developed Countries – have a higher per capita income and higher standard of living
2. Less developed Countries – have a lower per capita income and lower standard of living

39. 3. Newly industrialized Countries – are in between More Developed and Less Developed Countries in per capita income and higher standard of living

41. 3. Standard of Living – The quality of life in a country.
More Developed
Countries
Less Developed
Low Infant Mortality Rate
High (bad) Infant Mortality Rate
High Life Expectancy
Low Life Expectancy
High Literacy Rate
Low Literacy Rate
Industrial or Service Sector Jobs
Mostly Agricultural Jobs

42. Standard of Living - Example
More Developed
United States
Less Developed
Haiti
Per Capita Income
$46,900
$1,300
Infant Mortality Rate (per 1,000 live births)
6.26
59.69
Life Expectancy
78.11 years
60.78 years
Literacy Rate
99%
52.9%
Economic Sector
Services
Agricultural