Economic Activity
Types of Economic Activities
Primary Economic Activity
•
•
•
•
Fishing- tuna fishing
Forestry
Mining/drilling
Agriculture (based on land and climate)
– 50% of less developed countries
– 15-20% newly industrialized
– <8% of developed countries
• Commercial Agriculture: produced to sell
• Subsistence Ag.: provide for your family
Primary Economic Activity cont’d…
• Subsistence Farming
– Grow enough for family or
village
• Commercial Farming
– Use modern techniques
– Only small # of workers
needed
– Found in all countries
– Plantations- found in
newly industrialized
• Who owns most
plantations?
Secondary Economic Activity
• Manufacturing- Industry
– Takes raw material and turns into a finished
products
– Tuna into Canned Tuna
What are some examples of manufacturing in
the United States? In what regions? Cities?
Tertiary Economic Activity
The Service Industries
•
•
•
•
•
•
•
Transportation
Sales
Advertising
Government-some
Health Care
Banking
Education- some
Quaternary Eco Activities
Collecting, processing and distributing
information
• government, culture, libraries, scientific research,
education, and information technology.
Stages of Economic Activity
 Developed Country
 Modern Technology
 Mostly Tertiary Eco. Activities
(Service)
 Well developed economy
 GDP per Capita:
USA $46,000
 Has sustainable development
 Outsourced manuf. when costs
can be cut.
•Newly Industrialized
Mexico $15,600 (2012)
13% Agric
 Less Developed
 Limited modern
technology
 Dependent on
developed countries
for manufactured
goods.
 GDP per capita:
~$1000
 Mostly primary and
secondary eco.
activities
Zimbabwe- What stage am I?
$600.00 GDP per capita
66% Agric.
38% urban
3.8 Fertility rate
Know these front and backwards!!!
•
•
•
•
Primary- Agriculture
Secondary- Manufacturing (industry)
Tertiary- Service
Quaternary- data
USA 1.1% Agriculture (primary)
• 22.1 % Manufacturing
• 76.8% Service (Tertiary)
• Can U say “Sustainable development”
– Hmmm
– Monaco 95% service!!!
Mexico(Newly Indust) 13% Agric, 24% Manuf.,
63% Service
Bangladesh 18% Agric,28% Manuf., 52% Service
Zimbabwe(less developed) 66% Agric,
10% manu., 24% Service
Primary
What are some examples of raw
materials in your community?
What kind of finished product can
be made from this?
Standard of Living
(Daily Life)- look at all these things
• Life expectancy
• # of people per car
• Infant mortality rate
• GDP per capita
• Energy consumption
• Literacy rate
• Traditional Economy
• Human Resources
– Workers- a country’s greatest resource! YOU!
• Capital Resources
– Machines
– Money (Investments)
– Buildings
Compare a contractor with a hammer and nail
to one with lumber, a toolset and backhoe.
Which one represents the less developed
country?
Which one represents the developed country?
Supply and Demand
•As the price goes up, what happens to the demand?
• Real life•As the price is reduced, what happens to the supply of goods?
Economic Systems answer these
questions…
What will be produced?
How much will be produced?
How will it be distributed?
What will it cost?
Economic Spectrum
Total government
control
•
•
•
•
•
•
•
•
•
•
•
•
Economic Spectrum
No government
• Command Ec
• Communism
•Karl Marx
•Gov’t regulates
all
•Central
• Socialism/ Mixed
• Free-Market
•
• Capitalism
•
• based on profit
•
• private ownership
Matching: Communism, socialism,
capitalism, traditional
 Consumers make the decisions
 Welfare state
 Free doctors visit
 CNN, Fox, Comcast, Ixfinity, CBS, ABC, NBC
 Clay pots from hand
 Profit is motive for doing well
 Community farms
 Reebok, Nike, Addidas,…
 No social classes
 Follow parents line of work
 93Q, the Eagle, 104 KRBE, 740 Talk Radio,