Transcript Economies of the World

Economies of the World
Economic Activity
Primary Industries
• Primary industries use
natural resources to make
money.
• Examples include farming,
fishing, and mining
Economic Activity
Secondary
Industries
• Secondary industries use
raw materials to make
money.
• Examples include
manufacturing: furniture,
clothing, automotive
Economic Activity
Tertiary Industries
• Tertiary industries
provide services to make
money.
• Examples include doctors,
teachers, and clerks
Economic Activity
Quaternary
Industries
• Quaternary industries
make money by
distributing information
• Examples include
architects, lawyers, and
scientists
Types of Economies
Traditional
• A system in which people
grow their own food and
make their own goods.
• Trade usually happens
through an exchange of
goods, or a barter system.
Types of Economies
Market economy
• The most common economy is a
market economy which is a system
where individuals are free to buy
and sell as they wish.
• Private ownership, free trade,
competition
• Supply and Demand controls price
of goods.
• Examples: U.S., Australia, Germany
Types of Economies
Command economy
• This is a system in
which the government
makes all economic
decisions.
Economic Indicators
GDP
• Gross Domestic Product
• The value of all goods and
services produced within a
country during a single year.
Developed and developing countries
Developed Country
• Country with a strong
economy and a high
quality of life
• United States and
Germany
Developing country
• Countries with less
productive economies and
lower quality of life
• Nigeria and Afghanistan
Developed Countries
Developing Countries