ECONOMIC ECONOMIC GEOGRAPHYGEOGRAPHY

WHAT DO YOU MEAN BY WHAT DO YOU MEAN BY ECONOMY?ECONOMY?

Making and Making and exchanging goods exchanging goods and servicesand services

-like Nike shoes -like Nike shoes

-or, hiring a lawn -or, hiring a lawn

serviceservice

BUT HOLD ON; IT’S NOT THAT BUT HOLD ON; IT’S NOT THAT SIMPLESIMPLE

There are different types of There are different types of “economic systems”“economic systems”

TRADITIONAL ECONOMYTRADITIONAL ECONOMY

Making enough for self and family, Making enough for self and family, little surplus to sell little surplus to sell

• $ rarely used, just trade stuff$ rarely used, just trade stuff -“bartering”-“bartering”

MARKET ECONOMYMARKET ECONOMY Production of goods is based on Production of goods is based on

making a profitmaking a profit

-determined by consumer demand-determined by consumer demand

(supply and demand)(supply and demand)

-little government involvement (like in USA)-little government involvement (like in USA)

COMMAND ECONOMYCOMMAND ECONOMY The government The government

decides what is decides what is made, how much is made, how much is made, & the pricemade, & the price

-not based on-not based on

consumer demandconsumer demand

• Found in communist countries like Cuba

LEVELS OF ECONOMIC LEVELS OF ECONOMIC DEVELOPMENTDEVELOPMENT

DevelopingDeveloping- mainly - mainly farming,farming,

few factories, weak few factories, weak economy, poor economy, poor countriescountries

• Developed-Developed- farming & industry, farming & industry, strong economy, strong economy, high literacy high literacy and educationand education

MEASURING ECONOMIC MEASURING ECONOMIC DEVELOPMENTDEVELOPMENT

Per capita incomePer capita income -average amount of $ -average amount of $

per person in a country per person in a country

• GDP -total value of all goods made in a country

MEASURES, CON’T.MEASURES, CON’T.

Natural resourcesNatural resources

-type, amount, -type, amount,

accessibilityaccessibility

• Standard of livingStandard of living -literacy rate, life expectancy, -literacy rate, life expectancy, #of doctors, etc. #of doctors, etc.

THE GLOBAL ECONOMYTHE GLOBAL ECONOMY InterdependentInterdependent

-countries are closely connected and -countries are closely connected and dependent on one anotherdependent on one another