1. Unit #2 – Human Geography Economies of the World

2. Types of Economic Systems Free MarketTraditional Socialist Command (Communist)

3. Types of Economic Systems Free Market Socialist Traditional People freely produce and buy what they want Prices are set buy Supply and Demand Producers invest their money to make a Profit Little Government interference Free Enterprise, Capitalism Market Economy Command (Communist)

4. Types of Economic Systems Free MarketTraditional People freely produce and buy what they want Prices are set buy Supply and Demand Producers invest their money to make a Profit Little Government interference Free Enterprise, Capitalism Market Economy Socialist Command (Communist) Government provides free or low-cost public services: school, health care, etc. Government owns some basic industries Private Ownership of industries with Government regulation

5. Types of Economic Systems Free MarketTraditional People freely produce and buy what they want Prices are set buy Supply and Demand Producers invest their money to make a Profit Little Government interference Free Enterprise, Capitalism Market Economy Government makes all economic decisions Workers are supposed to share equally No private property Socialist Command (Communist) Government provides free or low-cost public services: school, health care, etc. Government owns some basic industries Private Ownership of industries with Government regulation

6. Types of Economic Systems Free Market Command (Communist) Traditional People freely produce and buy what they want Prices are set buy Supply and Demand Producers invest their money to make a Profit Little Government interference Free Enterprise, Capitalism Market Economy Government provides free or low-cost public services: school, health care, etc. Government owns some basic industries Government makes all economic decisions Workers are supposed to share equally No private property People work to meet their basic needs Subsistence Agriculture: Farmers grow enough to feed their families Cottage Industry: Goods are produced in private homes by hand Socialist Private Ownership of industries with Government regulation Barter is common Less Emphasis on Currency

7. Economic Spectrum Communist Socialist Free Market North Korea ► China ► GermanyUnited States Cuba ► Vietnam Great BritainJapan CanadaTaiwan ItalySouth Korea SwedenMexico NorwayBrazil FranceIndia SpainRussia Singapore ► = Moving toward Free Market

8. Economic Activities Primary – Gathering raw materials Secondary – Adding value to materials by changing their form. Tertiary – Business or professional services Quaternary – Providing information, management or research services

9. Natural Resources Renewable – Can be replaced by natural processes Examples: trees, seafood, Non-renewable – Cannot be replaced once used Examples: coal, petrolium, natural gas Inexhaustable – Unlimited supply Examples: sunlight, wind, geothermal heat