Economic Activity

1. Economic Activity

2. Outline • 1) Hand in Homework + Hand back homework • 2) Review the change in economic activity; Stone Age, A.R., I.R., Urbanization • 3) How we measure economic activity? • 4) Quiz + Quiz Take up • 5) Various types of economic systems • 6) Debate

3. The Past • Important to see how small changes in the past are considered technology. • As a result of these technological changes, people had time to do other things, and work on doing other things besides producing food. • People started to see how technology could improve their lives.

4. Stone Age • Everything in the stone age is centred on food gathering • People wander in tribes, groups of families, hunting animals for food and eat mainly nuts, fruits and berries • As soon as supply becomes sparse people leave the geographical area.

5. Modern Age • Modern time started around 1700 A.D. • It was during this time the second agricultural revolution took place. • The growth of the service industry took place after the industrial revolution, many jobs were being created.

6. Agricultural Revolution • People learned how to domesticate animals. • Learned how to grow plants and develop supply of animals for food • Towns and villages developed • New forms of technology emerged; such as the plough, tractor and better farming techniques. These gave people a chance to live better lives. • People learn to store food and transport it and then sell it. – This leads to improve economic activity.

7. Industrial Revolution • The industrial revolution drastically changed economic activity. Not as many people were needed to help produce food, so many moved to cities to find work in factories. • Cities are becoming the focus for economic activities. • Factories are appearing everywhere! • Population moves from the countryside to the city.

8. Industrial Revolution • Textile machines and steam engines are two examples of manufacturing inventions that have occurred during this industrial revolution. • More woman started working during the Industrial Revolution.

9. After the Industrial Revolution • After the I.R. economic activity started to change services for consumers. • Many manufacturing jobs have been lost since companies have moved their factories to developing countries where wages are lower and profits are higher. • Economic activity in the present day has changed because of trade as well. • Globalization is a term to describe increasing trade among world countries. Many countries benefit from globalization. Other countries do not have the resources to compete internally and find they are becoming poorer as other countries are becoming richer.

10. Urbanization • What is it?

11. Urbanization • This is not a modern phenomenon but a historic transformation • The social process whereby cities grow and societies become more urban. • Rapid and massive growth and migration to large cities. • By 2050, it is predicted that 64.1% and 85.9% of the developing and developed world respectively will be urbanized.

12. The Future • What kind of technology do we rely on in our economy?

13. The Future • The Internet!!!!! • Economic activities such as selling products take place in malls and stores. • A new method of selling is growing quickly. This method if called “e-commerce”, referring to selling and buying products over the internet. • More jobs are being created due to the increase of the internet in economic activity. • But service jobs have been cut since they are no longer needed. It is also easier for a person to purchase good from other countries, and this reduced the money made in ones own country.

14. Matching Activity: • Based on what we have learned, we have to match the economic terms into the appropriate time.

15. Measuring Economic Activity: • Economic activity is meant to improve peoples lives. • Economic inequality varies between societies and effects peoples ability to create wealth. • Ways to measure economic activity: • “Money” Economy • Formal Economic Activity: These are jobs where money is paid, usually as fees, wages, or profits. Governments spend a good deal of time and energy measuring these activities because taxes are often based on the figures. • Informal activities: people are trying to avoid being counted and measured by the government, such as criminal activity and private yard sales or bartering. • Bartering: occurs when people exchange things or value. • “Non-Money Economy”: • Unpaid economic activity is hard to measure. • What examples of unpaid activity can you think of?

16.  What Makes A better Life: • Economic activity has often been seen as producing more goods and services to make peoples lives better. • Goods and services are our material wealth. Some of these things help people live better and also have negative effects. Ex. Cars • Improvements in our lives also occur because of non-material wealth, improvements that cannot be seen or measured as good an services. An example is the human rights in a society. It is important but it is hard to measure the economic value of this change. .

17. Measuring the wealth of a country: • One common way is to look at incomes. • It shows how much people have to spend on the goods and services they need and want. • In Canada, an average income of families is over $56, 000 per year in other parts of the world people are living on a dollar a day. • There are two other commonly use ways to measure economic activity: • The Gross domestic product (GDP): measures the value in dollars of all the goods and services produced in the country in one year. Ex: add up money spend on rent, groceries, tv, repairs, dentist’s fees, phone bills that would be GDP. • The Gross National product: measures all the wealth earned by citizens of the country in one year.

18. Quiz • You will have 15 minutes for this quiz. • After we will mark them as a class • * pass your paper to the person in front of you. • Good luck!

19. Quiz Answers • 1. C • 2. A • 3. B • 4. D • 5. D • 6. TRUE • 7. TRUE • 8. FALSE • 9. TRUE • 10. FALSE