Economic Geography Terms
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Transcript Economic Geography Terms
Economic Geography
Mrs. Brahe
Global Studies
Objectives
At the end of this lesson,
you will be able to:
Identify the four basic types of economic activity
Define the four levels of economic activity
Distinguish among renewable, non-renewable,
and inexhaustible resources
Identify key components of economy support
systems
Distinguish between GNP and GDP and between
developing and developed nations
What is an Economy?
An economy consists of the
production and exchange of goods
and services among a group of people
Can be local, regional, national or
international
Economic Systems
Definition: the way people produce
and exchange goods and services
Four types:
Traditional – goods and services traded without
using money (“barter”)
Command – government controlled production
(they own the means “planned”)
Market – production is determined by demand
(“capitalism”)
Mixed – combination of command and market
provides so that all will benefit
Economic Activities
People choose how they meet their needs
Some people only raise enough food or animals to
meet their need to eat and have little left over to
sell to others = subsistence agriculture
Other areas have market-oriented agriculture that
produces crops or animals that farmers sell to
markets
Market oriented depends on the Law of Supply
and Demand: A law which states that when
supplies of goods and services become plentiful,
prices tend to drop. When supplies become
scarcer, prices tend to rise.
Economic Activities
Industries can be various sizes
Small industry - family of craftspersons who produce goods
to be sold locally, take place in home = cottage industries
Large industry – commercial, meets needs in a large area
Levels of Economic Activity
Primary: gathering raw material
Secondary: adding value to materials by
changing form (manufacturing)
Tertiary: providing business or professional
services (salesperson, teacher, or doctor)
Quaternary: information, management and research service
by highly-trained people
Natural Resources
Three types
Renewable: can be replaced naturally
(ex: trees, seafood)
Non-renewable: cannot be replaced once removed
from the ground (ex: metals like gold, iron or non-metals like
gemstones, limestone or even fossil fuels like petroleum and coal)
Inexhaustible energy: unlimited, as a result of
solar or planetary processes (ex: sunlight, wind, tides)
Are abundant but not distributed equally
around the world
Location, quality and quantity of a country’s
natural resources are important to its economy
Economic Support Systems
Producing and Distributing goods
requires helpful support systems!
Infrastructure – basic support systems
needed to keep an economy going
Includes power, communications,
transportation, water, sanitation
and education systems
More sophisticated infrastructure
= more developed country
Measuring Economic Development
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 other specific time (by… not
necessarily in)
Gross domestic product (GDP): total value
of all goods and services produced within a
country in a given period of time
GDP 2005
GDP = Consumption + Government Expenditures +
Investment +Exports - Imports
Measuring Economic Development
Levels of development
Developing nation
low GDP and limited development
on all levels of economic activities
Lack an industrial base, struggle to provide people
with items to meet basic needs
Developed nation
High per capital income and varied economy
(especially with quaternary activities like
computer software development)
Western Europe, Japan, Canada, United States…
And we are done with Human
Geography notes!