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 categories. Primary, secondary, tertiary, and quaternary. Economic Activities Economic activities that use natural resources directly are called primary resources. Include basic raw materials and are located on the site of the natural resource being used. Continued/Secondary Use raw materials to create something new. Examples: steelmaking, processing wheat into flour, making lumber into plywood. Continued/Tertiary Provide services to people and businesses. Doctors, teachers, and dry cleaners. Located near customers. Continued/Quaternary Workers process and distribute information 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. Continued 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 year. Gross domestic product (GDP) includes only goods and services created within the country. Useful when divided by the number of people of the country. continued 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 Countries World is organized into developed or developing countries. Developed – high level of industrialization, and their people enjoy high standards of living. Developing – Poorer countries that are less developed. Economy is less productive and have lower standards of living.