Transcript wg 6.11

Chapter 6.1
Economic Geography
Pg. 113
Economic Systems
Deals with how people earn a living and
use resources and with the links among
economic activities.
 Grouped into 4 money-making
 Primary, secondary, tertiary, and
Economic Activities
Economic activities that use natural
resources directly are called primary
 Include basic raw materials and are
located on the site of the natural
resource being used.
Use raw materials to create something
 Examples: steelmaking, processing
wheat into flour, making lumber into
Provide services to people and
 Doctors, teachers, and dry cleaners.
 Located near customers.
Workers process and distribute
 Workers are required to to have
specialized skills and knowledge.
 Jobs include: research scientists,
computer programmers, and
government administrators.
Economic systems
3 main kinds of systems: subsistence
economy – people make stuff for themselves.
 Market Economy – people choose what to
buy and sell. Guided by free enterprise – lets
competition among businesses determine the
price of products.
 Basis of capitalism, where businesses are
privately owned.
Command Economy – the government
decides what to produce, where to make it,
and what price to charge.
 May charge less for a product so more
people can afford it. Cost 1.00 to produce a
loaf of bread but the government charges .25
 Found in Communist countries.
 Govt. owns or controls almost all production.
Level of Development
Development refers to the steady
improvement of in the economy and in
people’s quality of life.
Measures of Development
One measure is Gross National Product
(GNP) – total value of goods and
services that a country produces in a
 Gross domestic product (GDP) includes
only goods and services created within
the country. Useful when divided by the
number of people of the country.
Industrialization – process by which
manufacturing based on machine power
becomes widespread in an area.
Standard of Living
A countries level of development, in
turn, determines the standard of living of
its people.
 Literacy rate – the percentage of people
who can read and write – reflects
standard of living.
Developed and Developing
World is organized into developed or
developing countries.
 Developed – high level of industrialization,
and their people enjoy high standards of
 Developing – Poorer countries that are less
developed. Economy is less productive and
have lower standards of living.