economic geography. i. economic systems a. traditional - barter and trade. (1 cow for 5 pigs?) b....
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Economic Geography
I. Economic SystemsA. Traditional - Barter and trade. (1 cow for 5 pigs?)
B. Communism - Economy determined by the government (command).The government owns all the means of production (the factories and the farms).
C. Free Enterprise - Economy determined by consumers competition (free market or capitalism).
D. Mixed - Most countries have a mix of command and market economies. Sometimes called Socialism (in between free enterprise and communism).
Economic Spectrum
Pure Communism, Pure Free
Enterprise
Sometimes called:
Planned Economy or Command Economy
Sometimes called:
Free Market, Market
Economy,
or Capitalism
Mixed Economy
Economic Spectrum
Pure Communism, Pure Free
Enterprise
Mixed Economy
Technically Socialism is
the Command Economy
However in America many politicians call
the Mixed Economy Socialist
Economic Spectrum
Pure Communism, Pure Free
Enterprise
Mixed Economy
Cuba &
North Korea
France & Sweden
Germany
United Kingdom United States
Singapore
Economic Spectrum
Pure Communism, Pure Free
Enterprise
Mixed Economy
United StatesDemocrats
Republicans
II. Levels of Economic Activity
A. Primary - gathering raw materials.
Mining
Strip Mining
Farming
Lumber
B. Secondary - Making a product.
• Lumber Industry– Primary Activity
• Furniture Industry– Secondary Activity
• Secondary activities take place in:– Factories (Industrial)– Homes or workshops
(cottage industries)
• Mining Industry (metals) - Primary Activity
• Automobile Industry - Secondary Activity
C. Tertiary - Business or professional services.
*restaurants
*teachers
*Banks
*stores
*doctors
D. Quaternary - provide information, management and research by highly trained persons.
*business manager
*research scientist
• III. Natural Resources - Materials taken from the earth.
A. Renewable (Inexhaustible Energy) - Resources that can be replaced.
Renewable Resources include;
*Wind
*Sun (solar)
*Water (hydro)
*Geothermal
*Timber
Geothermal Energy
B. Non-Renewable - Resources that can not be replaced.
Examples include;*oil *coal*natural gas*minerals
IV. Infrastructure - A countries support system. Includes:
1. roads
2. water supply
3. power supply
4. education
system
Infrastructure
Infrastructure
• Sewer system
V. Measuring Economic DevelopmentA. per capita income - average amount of money earned by each person in a country.
- U.S. - $46,900*- Japan - $34,000*- China - $3,000*- Haiti - $1,300*• 2008 estimate (not in PPP**)• ** PPP = Purchasing Power Parity
Per Capita Income
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
U.S. Japan China Haiti
U.S.
Japan
China
Haiti
B. Gross Domestic Product - Total value of goods and services produced by a country.
*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)
GDP - Gross Domestic Product in trillions
$14.26
$7.97
$4.92
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
U.S. China Japan
U.S.
China
Japan
C. Development Levels1. 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
3. Standard of Living – The quality of life in a country.
More Developed
Countries (MDCs)
Less Developed
Countries (LDCs)
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
Standard of Living - ExampleMore 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
C. Development Levels
3. Newly industrialized Countries – are in between More Developed and Less Developed Countries in per capita income and higher standard of living