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
Objective:
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
Labor
– 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
1.
Education level required to perform task
2.
Location (geographic – available resources)
3.
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?
•
Traditional
•
Command
•
Market
•
Mixed

•
Traditional
Economy
-
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:
Japan,
Peoples’ Republic of China

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

Developing
Country
•
GDP: Low
• Per Capita Income: Low
• Employment Sectors: Mostly
“Primary”
•
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
Salvador

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
Examples:
India
Mexico

Developed Country
• GDP: High
• Per Capita Income: High
• Employment Sectors: Mostly
“Tertiary” and “Quaternary”
• Infrastructure: Strong
– High amount of roads, Airports,
Ports
– 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