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Grab Binders/ Notebooks
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Initial next to your name (with pen or pencil)
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Otherwise your absent
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Start working on the DOL/DO NOW
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You have 4 minutes when the bell rings

ECONOMIC LEVELS AND DEVELOPMENT

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Study of how people make money
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How a country uses it’s resources to make money
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Three fundamental questions
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What gets produced
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How its produced
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Who received what’s produced
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Money baby, money baby

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Traditional
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Free enterprise
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Communist
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Socialist
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There’s levels to this

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An economy that is based off traditions, customs, & beliefs
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People do not choose what their position is society will be
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Can own private property
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Mo Money Mo Problems

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Tend to be based primarily off agriculture
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Subsistence agriculture
- Growing enough just to fed the family. (slow economic growth)
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Cottage industries
• working together to supply the family and make a small profit

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A system in which people own their own goods and property
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Supply & Demand
how much is available vs how much is needed
determines the price of goods
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Tends to have commercial agriculture/ industries
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Idea of making a profit
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Its my money and I want it now

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Wanted to create a classless society and keep business owners from making a large profit
• all property owned by the government
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All economic decisions are made by the government
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No Private property
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Better have money

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The government owns the most important businesses that produce goods
• meant to protect underpay for overworked workers
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The government makes the decisions
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The goal in mind is to have fair distribution of income

There’s levels to this

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The advancing of a countries economic system
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Countries with advanced economies are referred as more developed nations
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Less developed nations have lower standards of living and less technologies
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Countries that were transitioning are known as newly industrialized or developing nations

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Human development indicators that measure a countries economic system
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They include
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Life Expectancy
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Birth and Death Rates
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Infant Mortality Rate
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Gross Domestic Product (GDP)
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Literacy Rate
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Government
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Quick Response

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Economic Development refers to how advanced an economy is. A countries economic development is often determined by the types of economic activities.
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Primary
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Secondary
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Tertiary
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Quaternary

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The most basic of them all
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Includes the production of goods and extradition of resources
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Raising livestock, agriculture, fishing, logging ,etc
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The smaller portion of people in this group, the more likelihood the country is more developed
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In a less developed country, most people will engaged in primary economic activities
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Example: Farming in the Pampas Plains

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The manufacture and production of goods, such as making textiles, furniture, etc.
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Adds value to raw materials by processing them or changing the form
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Example- Maquiladoras in Northern Mexico
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Newly industrialized countries have large numbers of their population in this economic level

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Tertiary
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Services that are performed by people and businesses
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Ex- Teachers, Nurses, Lawyers- Any one in the service industry
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Quaternary
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Involves information processing and management
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Examples- computer programmers, general managers
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Majority of workers in developed country are engaged in these activities

DOL
1.
Which is a central characteristics of a free market economy?
a) The government owns the means of production b)
All wage earners are paid the same amount c) Labor unions are prohibited d) Businesses are driven by the desire for profits

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2. which group has the greatest influence in determining what goods and services will be produced in a communist economic system?
a) Farmers b) Government officials c) Consumers d)
Business leaders

3. In a traditional economy, information about the way goods are produced is passed from one generation to the next by thea) Family b) Legal system c) Public schools d)
Government

4. What is the major feature of an economy based on subsistence farming?
a) Family b) Legal system c) Public school d) government

5. Which is a major feature of an economy based on subsistence farming?
a) Most adults work outside the home b) Farmers compete with each other c) Farmers raise just enough crops for their family to survive d) The government decides which crops will be grown

6. In a socialist economic system, the governmenta) Has little to say in what goods are made b) Does not influence the distribution of goods and services c)
Guarantees all consumers a high income d)
Often owns major businesses