Economic Geography

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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.

2.

3.

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

changing their form

- Adding value to raw materials by

• 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

Economic Stages of

Development

Least Developed Country

GDP:

Nearly none – collaped.

Per Capita Income:

than $1000/yr)

Very Low (less

Employment Sectors:

at all

“Primary” if any

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:

“Primary”

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:

Salvador

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

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

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