Economic Geography – The Basics

1. Economic Geography – The Basics World Regional Studies

2. Economic Geography • Today, we will be examining economic geography by filling out an organizer • Use the PowerPoint to help with what the concept means • Then identify examples for each concept

3. What is an economic system? • Economic System: the organized way people produce and exchange goods

4. Types of Economic Systems • Traditional Economy: Goods and services are traded without exchanging money…also called barter(trade) • Goods are produced based on ritual and custom and what a society needs • Less developed and agricultural based • Examples?

5. Types of Economic Systems • Command Economy: Production of goods and services is determined by a central government, which usually owns means of production (land, factories, etc.) • Production does not necessarily reflect consumer demand (what people want) • Also called COMMUNISM!, SOCIALISM, MARXISM and a planned economy • Examples?

6. Types of Economic Systems • Market Economy: Production of goods and services is determined by the demand from the consumers • Also called capitalism,free market economy, or Laissez-faire economics • Any true market economies?

7. Types of Economic Systems • Mixed Economy: Combination of command and market economies • Has both privately owned property/businesses and government control • Examples?

8. Levels of Economic Activity • Primary - gathering raw materials • Examples? • Secondary - change the materials to add value • Examples? • Tertiary - provide professional services to sell/use materials • Examples?

9. Natural Resources • Materials on or in the earth that have economic value • Examples?

10. What is infrastructure? • Basic support systems needed to keep an economy going • Includes transportation, power systems, communication systems, etc. • Examples? (Be specific)

11. Types of Natural Resources • Renewable - resources that can be replaced through the earths natural processes • Examples? • Non-renewable - Resources that cannot be replaced once they have been removed from the ground • Examples? • Inexhaustible energy sources – primarily energy resources which never run out • Examples?

12. Economic Comparisons • Per capita income – average amount of money earned by each person in a political unit • Gross National Product - total value of goods and services produced by a country over a year • Gross Domestic Product – total value of goods and services produced within a country over a year • How are GDP and GNP different?

13. Economic Classifications • Developing country – poor infrastructure, high crime, poverty, low standards of living, low GDP and income, lack of basics and technology, unstable • Examples? • Developed country – good infrastructure, higher standards of living, high GDP, good technology, stable • Examples?