1. Economy

2. Work Making things Buying things Trading All of these examples are ways that our Economy is stimulated.

3. How does our text define Economics???? Economics –The study of the production, distribution, and use of goods and services. Can you tell me how we measure a country’s Economy???

4. Measuring our Economic Value GDP… –Gross Domestic Product Defined as the value of all goods and services that a country produces in one given year. Gross Domestic Product can also tell you about a country’s Standard of Living.. The __________ a country’s standard of living, the higher the GDP will be… The __________ a country’s standard of living, the lower the GDP will be….

5. 2 Types of Countries… The countries of the world are divided into two different categories based on the country’s industrialization…. Industrialized Countries Developing Countries

6. Industrialized Countries Countries are classified as Industrialized when…. –The country has more manufacturing and less agriculture.. –Access to Healthcare Systems –High Literacy Rate Examples… –USA, Canada, Japan, as well as most European Countries.

7. Developing Countries Developing countries are moving toward industrialization.. –2/3s of the worlds people live in developing countries. Characteristics of developing countries… –Poor, primary industries –Fishing, Farming, Mining, and Forestry –Crowded Cities, low Literacy Rate –Limited access to Healthcare –Examples… Mexico and S. Korea

8. 2 types of Developing Countries Third World Countries… –Show some economic growth. These countries lack the economic opportunities of most industrialized countries. Fourth World Countries…. –Countries that show no economic growth.

9. Study this Chart…... CountryPopulationPopulation Growth Rate Per Capita GDPLife ExpectancyLiteracy RateTelephone Lines United States290.3 million0.9%$37, 6007797%194 million France60.1 million0.4%$26,0007999%35 million South Korea48.2 million0.%$19,6007595%24 million Mexico104.9 million1.4%$8,9007292%9.6 million Poland38.6 million0.0%$9,7007399%8 million Brazil182.1 million1.1%$7,6007186%17 million Egypt74.7 million1.8%$4,0007057%3.9 million Myanmar42 milllion0.5%$1,7005583%250,000 Mali11.6b million2.8%$9004546%23,000

10. Looking at the Chart in your book…. What countries have the highest GDP? What countries have the highest Literacy Rates? What might this connection be?

11. 3 Economic Questions What to produce? How to produce? For whom to produce?

12. 3 Types of Economies Market or Free Enterprise Economies Command Economies Tradition Based Economies Mixed Economies

13. Market or Free Enterprise An economy in which business owners and consumers make all economic decisions about what to make, sell, and buy.

14. Command Economies An economy in which the government owns most of the industries and makes most of the economic decisions.

15. Tradition Based Economies Exchange of goods and services based on customs and traditions.

16. Mixed Economies An exchange of goods and services based on at least two other types of economic systems.