Economics Strand Review

EOC Review

Primary Economic Sector

• Primary Activities involve gathering raw materials such as timber for immediate use or to use in the making of a final product

• Predominate sector in less developed regions

• Includes agriculture, hunting-gathering, mining, fishing, farming, ranching, timber, etc.

Secondary Economic Sector

• Secondary Activities involve adding value to materials by changing their form.

• Predominately located in more developed regions than primary activities

• Includes manufacturing automobiles, refining petroleum, construction, shipbuilding, etc.

Tertiary Economic Sector

• Tertiary Activities involve providing business or professional services.

• Predominately located in more developed to highly developed regions

• Includes service industry = salespeople, teachers, doctors, banking, tourism, etc.

Quaternary Economic Sector

• Quaternary Activities involve highly intellectual positions

• Predominately located in highly developed regions

• Provide information, management, and research services by highly-trained persons

• Includes libraries, college professors, culture, government, etc.

Levels of Development (1)

• The more developed a region is, the more variety of economic activity

• Less Developed – high poverty, high birth rate, high infant mortality rate, low literacy, poor health care, low life expectancy, low GNP/GDP etc.

• Example: several countries in Africa south of Sahara/north of South Africa

Levels of Development (2)

• More Developed (compared to less developed) – less poverty, lower birth rate, lower infant mortality rate, increased literacy, better health care, higher life expectancy, increased GNP/GDP etc.

• Examples: China, Jordan, South American countries

Levels of Development (3)

• Highly Developed - low poverty, low birth rate, low infant mortality rate, high literacy, good health care, high life expectancy, high GNP/GDP etc.

• Examples: USA, Canada, Western European countries, Japan

Industrialization

• Farming machinery has industrialized nations– Less subsistence farming (growing just

enough for family’s basic needs)– Less farm workers – migrated to other places

for job opportunities– Led to more market-oriented agriculture

Infrastructure

• Basic support systems needed to keep an economy going

• Includes power, communications, transportation, water, sanitation, and education systems.

• The more sophisticated the infrastructure, the more developed the country.

Cottage vs. Commercial Industry

Cottage Industry Commercial Industry

Home-based Factory-based

Unique products Mass-produced products

Small-scale production Large-scale production

Small-Scale Agriculture Examples

• Kibbutz – communal farming in Israel

• Hippie Communes – existed in the 60s

• Subsistence Farming

Market-oriented Agriculture Examples

• Dole Pineapple plantations

• Chiquita Banana plantations

Traditional Economy

• Goods and services are traded without exchanging money. Also called “barter.”

• Families produce food through subsistence farming.

• Sons typically learn the same type of jobs their fathers work in.

• Examples– Tribes of the Amazon rain forest – The Amish culture of the United States

Command Economy

• Production of goods and services is determined by a central government, which usually owns the means of production.

• Production does not necessarily reflect the consumer demand.

• Also called a planned economy.• Examples

– North Korea– Cuba

Market Economy

• Production of goods and services is determined by the demand from consumers.

• Also called a demand economy or capitalism.

• Example – United States

Mixed Economy

• A combination of command and market economies provides goods and services so that all people will benefit.

• Examples:– United States

– Canada– UK– Japan