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Economic Geography

Economic Geography. Ch 4 Section 5. Economy. Consists of the production and exchange of goods and services among a group of people Local Regional National International. Economic Systems. the way people produce and exchange goods and services 4 basic types Traditional Economy

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Economic Geography

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  1. Economic Geography Ch 4 Section 5

  2. Economy • Consists of the production and exchange of goods and services among a group of people • Local • Regional • National • International

  3. Economic Systems • the way people produce and exchange goods and services • 4 basic types • Traditional Economy • Command Economy • Market Economy • Mixed Economy

  4. Economic Systemsthe way people • Traditional Economy • Goods and services are traded without exchanging money • Also called “barter” http://www.flickr.com/photos/7144184@N03/2267434246/sizes/s/

  5. Command Economy • Production of goods and services are determined by the central government • Government owned • Sometimes called a “planned” economy • Supply and demand does not always apply http://thevirtuousrepublic.com/blog/wp-content/uploads/2008/05/cp_flag_large.gif

  6. Market Economy • Production of good and services is determined by consumer demand • Sometimes called “supply and demand”

  7. Mixed Economy • Combination of command and market economies provide goods and services so that all people will benefit Capitalism + Socialism

  8. Levels of Economic Activity • Primary Activities • Gather raw materials • Ex: Cutting trees for immediate use • Secondary Activities • Adding value to materials by changing form • Ex: Manufacturing automobiles • Tertiary Activities • Providing business or professional services • Ex: Doctors, teachers, salespeople • Quaternary Activities • Provide information, management, and research by highly-trained people

  9. Economics of Natural Resources • Natural resources – materials on or in the earth (trees, fish, coal, etc.) • Renewable – replaced through natural process • Trees, seafood • Non-renewable – cannot be replaced • Fossil fuels, metals • Inexhaustible energy sources – Solar and planetary processes, unlimited in quantity • Sunlight, wind, geothermal heat, tides

  10. Infrastructure • Basic support systems needed to keep an economy going – the more sophisticated the infrastructure, the more developed the country • Power • Communications • Transportation • Water • Sanitation • Education systems

  11. Measuring Economic Development • Geographers use a variety of standards to make comparisons among economies • Per capita income – average amount of money earned by each person in a political unit • Gross National Product (GNP) – total value of all goods and services produced BY a country over a year or some other specified period of time • Gross Domestic Product (GDP) – total value of all goods and services produced WITHIN a given country in a given period of time

  12. Characteristics of a Developing Country • Low GDP per capita • Limited development on all levels of economic activities • Lack an industrial base • Struggle to provide its citizens with basic needs • Examples: Some Sub-Saharan African countries, some South Asian countries

  13. Characteristics of a Developed Country • High per capita income • Varied economy with a good amount of quaternary activities • Examples: US, Canada, Great Britain

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