Transcript Economy - Effingham County Schools

Economy
Economy
•
•
•
•
Work
Making things
Buying things
Trading
• All of these examples are ways that our
Economy is stimulated.
How does our text define
Economics????
• Economics
– The study of the production, distribution, and
use of goods and services.
Can you tell me how we measure a
country’s Economy???
Measuring our Economic Value
• GDP…
– Gross Domestic Product
• Defined as the value of all goods and services that
a country produces in one given year.
• Gross Domestic Product can also tell you
about a country’s Standard of Living..
The __________ a country’s standard of living,
the higher the GDP will be…
The __________ a country’s standard of living,
the lower the GDP will be….
2 Types of Countries…
• The countries of the world are divided into
two different categories based on the
country’s industrialization….
• Industrialized Countries
• Developing Countries
Industrialized Countries
• Countries are classified as Industrialized
when….
– The country has more manufacturing and less
agriculture..
– Access to Healthcare Systems
– High Literacy Rate
• Examples…
– USA, Canada, Japan, as well as most
European Countries.
Developing Countries
• Developing countries are moving toward
industrialization..
– 2/3s of the worlds people live in developing
countries.
• Characteristics of developing countries…
– Poor, primary industries
– Fishing, Farming, Mining, and Forestry
– Crowded Cities, low Literacy Rate
– Limited access to Healthcare
– Examples…
• Mexico and S. Korea
2 types of Developing Countries
• Third World Countries…
– Show some economic growth. These
countries lack the economic opportunities of
most industrialized countries.
• Fourth World Countries….
– Countries that show no economic growth.
Study this Chart…...
Country
Population
Population
Growth Rate
Per Capita GDP
Life Expectancy
Literacy Rate
Telephone Lines
United States
290.3 million
0.9%
$37, 600
77
97%
194 million
France
60.1 million
0.4%
$26,000
79
99%
35 million
South Korea
48.2 million
0.%
$19,600
75
95%
24 million
Mexico
104.9 million
1.4%
$8,900
72
92%
9.6 million
Poland
38.6 million
0.0%
$9,700
73
99%
8 million
Brazil
182.1 million
1.1%
$7,600
71
86%
17 million
Egypt
74.7 million
1.8%
$4,000
70
57%
3.9 million
Myanmar
42 milllion
0.5%
$1,700
55
83%
250,000
Mali
11.6b million
2.8%
$900
45
46%
23,000
Looking at the Chart in your
book….
• What countries have the highest GDP?
• What countries have the highest Literacy
Rates?
• What might this connection be?
3 Economic Questions
• What to produce?
• How to produce?
• For whom to produce?
3 Types of Economies
• Market or Free Enterprise Economies
• Command Economies
• Tradition Based Economies
• Mixed Economies
Market or Free Enterprise
• An economy in which business owners
and consumers make all economic
decisions about what to make, sell, and
buy.
Command Economies
• An economy in which the government
owns most of the industries and makes
most of the economic decisions.
Tradition Based Economies
• Exchange of goods and services based on
customs and traditions.
Mixed Economies
• An exchange of goods and services based
on at least two other types of economic
systems.