Transcript Economic Geography

Economic
Geography
Economy:
Consists of the
production and
exchange of goods and
services among a group
of people.
Economic System:
The way people produce
and exchange goods
and services.
4 Basic Types of
Economic Systems:
1) Traditional Economy
2) Command Economy
3) Market Economy
4) Mixed Economy
Traditional Economy:
*goods and services are
traded without exchanging
money (a.k.a. “barter”)
*often found in rural
regions with high levels of
subsistence farming
Command Economy in Africa
Command Economy:
*production of goods and
services determined by
central government, which
usually owns the means of
production
*a.k.a. “planned economy”
Market Economy:
*production of goods and
services determined by the
demand from consumers
*a.k.a. “demand economy”
or capitalism
Mixed Economy:
*combination of command
and market economies that
provides goods and
services so that all people
will benefit
4 Types of Economic
Activities:
1)Primary
2) Secondary
3) Tertiary
4) Quaternary
Primary Activities
involve gathering raw
materials such as timber
for immediate use or to
use in the making of a
final product
Secondary Activities
involve adding value to
materials by changing
their form.
Tertiary Activities
involve providing
business or professional
services.
Quaternary Activities
provide information,
management, and
research services by
highly-trained persons.
Economics of Natural
Resources
Natural
Resources =
Materials on or in
the earth that
have economic
value
3 Types of
Resources:
Renewable
2)Non-Renewable
3)Inexhaustible
Energy Sources
1)
Renewable – can
be replaced
through natural
processes
Non-Renewable:
cannot be
replaced once
they have been
removed from
the ground
Inexhaustible
Energy Sources:
used for
producing power
and are unlimited
in quantity
Infrastructure consist’s of the
basic support
systems needed to
keep an economy
going
*power, communications,
transportation, water,
sanitation, and education
systems
3 Major Systems of
Infrastructure
Transportation
Communications
Systems
3) Technology
1)
2)
TRANSPORTATION
COMMUNICATIONS
SYSTEMS
TECHNOLOGY
Ways To Measure
Economic
Development
*Per Capita Income
*Gross National Product
(GNP)
*Gross Domestic Product
(GDP)
PER CAPITA
INCOME
*the average amount of
money earned by each
person in a political unit
GROSS
NATIONAL
PRODUCT
(GNP)
*the total value of all goods
and services produced by a
country over a specified
period of time
GROSS
DOMESTIC
PRODUCT
(GDP)
*the total value of all goods
and services produced
within a country in a given
period of time
Levels of Economic
Development
A)
Developing Nations
*have a low GDP and limited
development on all
economic activities
B) Developed Nations
*high per capita income and
varied economy (U.S.,
Japan, Canada)