Economic Geography


Bell Ringer

• Answer the following questions in a short paragraph:

1. What is the condition of the US economy right now?

2. Why is it in this condition?

3. How does this affect you or your family?

Economic Geography


Students will be able to identify and distinguish b/w different types of economic systems from various regions.

What is an Economy?

Production or exchange of goods and services by a group

What are goods and services?

Goods – things to be traded, bought, or sold

Services – things people do for others in exchange for payment


– work force, the workers

What is Supply and Demand?

• Supply – how much is available from market

• Demand – how much is wanted by consumers

What is the “Law of Supply and Demand”?

• As supply increases, price goes down.

• As demand increases, price goes up.

• How much something costs is mainly a function of these two factors.

What are GNP and GDP?

GNP – “Gross National Product”

Total value of all goods and services by a country over one year. Includes facilities overseas owned by domestic companies.

GDP – “Gross Domestic Product”

Total value of all goods and services within a country’s borders over one year. This is a good indicator of the size of a country’s economy.

Examples (2010 est.)

USA – $14.5 trillion

Mexico – $1.0 trillion

Japan – $5.4 trillion

China - $5.8 trillion

Sudan - $0.07 trillion

What is Per Capita GDP?

• GDP per 1000 people, how “wealthy” the country is.

Roughly the amount of $$$ earned per person in a political unit per year. Similar to “Per Capita Income”, but not exactly the same.

Examples? U.S. = $47,000 Mexico = $14,000 Japan = $33,000 China = $7,500

Sudan = $2300

What is Infrastructure?

Basic support system to keep or start an economy going

• Roads

• Electricity

• Water

• Airports

• Ports

• Trains

What are the 4 Economic Employment Sectors?

Different levels of employment (jobs) based on variety of factors


Education level required to perform task


Location (geographic – available resources)


Location (to appropriate market)

Primary Employment Sector

• Gathering raw materials

– natural resources taken from the earth

• Example: Mining,

Fishing, Farming

Secondary Employment Sector

• Manufacturing / Industry - Adding value to raw materials by changing their form

• Example:

Iron changed into an automobiles

Tertiary Employment Sector

• Business or professional services

• Example: teachers, retail salespeople, doctors

Quaternary Employment Sector

• Provide info, research, management, etc. by highly trained personnel

• Managers, scientists, software designers

What are the 4 basic types of economic systems?








Goods and services are exchanged without money

-Also called “Barter”

-Example: Primitive societies

Market Economy

• Goods and services are determined through Supply and Demand

• Also called “ Free Market Economy ” or “ Capitalism ”.

• Example: United States, in theory

Command Economy

• Production of goods and services determined by the government.

• Also called “Planned Economy”

• Example: Communist countries

Mixed Economy

• Combination of command and market economies

• Goods and services for benefit of all

• Example:


Peoples’ Republic of China

Economic Stages of


Least Developed Country

• GDP: Nearly none – collaped.

• Per Capita Income: Very Low (less than $1000/yr)

• Employment Sectors: “Primary” if any at all

• Infrastructure: Very little to none

– Lack of electricity

– Lack of clean water

– Lack of roads, Airports, Ports

• Quality of Life: In crisis, collapsed infrastructure and economy.

Examples: Afghanistan, Somalia, Haiti



GDP: Low

• Per Capita Income: Low

• Employment Sectors: Mostly


Infrastructure: Relatively little

– Lack of electricity

– Lack of clean water

– Lack of roads, Airports, Ports

• Quality of Life: Low, little literacy, nutrition, or medical care

Examples: Burma, Jamaica, El


Newly Industrialized Country (NIC)

• GDP: Low/Medium but increasing

• Per Capita Income: Low/Medium but increasing

Employment Sectors:

“Primary” shifting to “Secondary” to varying degrees

• Infrastructure: Increasing

– Things are being built as wealth increases

– Long process, very expensive

• Quality of Life: Still low in most places, but improving in many ways




Developed Country

• GDP: High

• Per Capita Income: High

• Employment Sectors: Mostly

“Tertiary” and “Quaternary”

• Infrastructure: Strong

– High amount of roads, Airports,


– Clean water systems

– Electricity available to all

Quality of Life: High, with good nutrition, medical care, education

Picture A

Which picture best fits each economic level?

Picture C

Picture B Picture D