Economic Geography
World Geography and Cultures
Chapter 4
Major types of economic systems
Traditional economy
z
Goods and services are traded or bartered
Command Economy
z
Production of goods and services is determined by a central government
z
Production does not always reflect consumer demand
z
z
Which usually owns the means of production
Also called a planned economy
Market Economy
z
Production of goods and services is determined by the demand from
consumers
z
Also called a demand economy
Mixed Economy
z
Combination of command and market – provides goods and services so
that all people will benefit
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Types of Economic Activities
Primary
z
Gathering & extracting
z
The “getters”
Secondary
z
Adding value, making,
changing
z
The “makers”
Tertiary
z
Providing a service – may
require training
z
The “doers”
Quaternary
z
Information, management, and
research
z
The “deciders”
Economics and Natural Resources
Renewable resources
z
Resources that can be replaced
through natural processes
z
Trees, fish
Nonrenewable resources
z
Resources that cannot be replaced
once they have been removed
from their source
z
Gold, silver, oil
Inexhaustible resources
z
Resources that are the result of
solar or planetary processes and
are unlimited in quantity
z
Sunlight and wind
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Economic Support Systems
Infrastructure
z
Basic support systems needed to
keep an economy going
z
z
z
z
z
z
z
Power
Communication
Transportation
Water
Sanitation
Education systems
Transportation may be one of the
most important aspects of this
system
Communication systems and
level of technology are strong
indicators of how highly
developed a country is
Measuring Economic Development
Per capita income
z
An average amount of money earned by each person in a political unit
GNP
z
Gross National Product
z
Total value of all goods and services produced by a country over a
specified period of time (usually year)
GDP
z
Gross Domestic Product
z
Total value of all goods and services produced within a country over a
given period of time
HDI
z
Human Development Index
z
This is a standard that uses other data with the GNP/GDP such as
available healthcare, access to clean water, literacy rates, and economic
sector jobs
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Types of Development
LDC
z
Less
developed
country
z
Nigeria, El
Salvador
MDC
z
More
developed
country
z
US, Japan
NDC
z
Newly
developing
country
(emerging)
z
Mexico,
India, China
Relative Characteristics of Development
DEVELOPED:
z
Adequate food &
balanced diets
z
z
z
z
z
z
z
z
z
z
z
z
Infectious, respiratory, and
parasitic diseases
medical services are generally
poor & hard to find
Poor, overcrowded, housing,
z
z
Low consumption of protein
Hunger & malnutrition
Higher incidence of disease
z
Usually good & available
medical
Usually good social
conditions, housing, and
sanitation
Education & low illiteracy
Technical proficiency
Women are increasingly
treated on equal terms
with men.
Inadequate or unbalanced diets
z
Low incidence of disease
z
z
Health problems from
overeating
LESS DEVELOPED:
few public services & bad
sanitation
Little education & high illiteracy
Hindered scientific & technological
advancement
Women may be held in an inferior
position in society.
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