Bellringer
• We will have a series of political cartoons to
introduce you to various economic systems
• On the back of your note packet, number 1-9 and
answer the questions at the top of the cartoons
BACKPACKS AND ID’S
1. Who caused the conflict?
1.What can you infer about socialism?
2. Do you feel socialism is a good or bad thing? Explain
3. What can you infer about capitalism?
4. Do you feel capitalism is a good or bad thing? Explain
5. What differences do you see between capitalism and
communism?
6. In your opinion, which one seems to be a better system?
7. According to the cartoon, do you agree or disagree
that capitalism is not working? Explain
9. Who caused the conflict?
Economic Geography
Economic Indicators and Systems
What is an Economy?
The way a nation makes choices
about how it will use its
resources to produce and
distribute goods and services
Economic
Indicators,
what are they?
They tell how well an economy is
performing.
What is GDP?
•It is the total value of all goods and
services produced by a nation in a year.
(GDP = gross domestic product.)
What is GDP
per capita?
•It reflects the value of goods and
services produced in a year in a country
by an average person.
What are
some other
economic
indicators?
•Average number of automobiles,
•Telephones,
•Televisions,
•Or computers per person
GDP – Gross Domestic Product (total value of goods and services
produced divided by the total population)
Economic Systems – 4 Types
Socialist - Syria
Communist – China
Free Enterprise – United States
Traditional – Java, Indonesia
Four Types of Economic Systems
1.
2.
3.
4.
Traditional
Free Enterprise
Communist
Socialist
Village in Bhutan – South Asia
Traditional Economies
Bushmen of Kalahari - Africa
Berbers of Algeria
•Economic Decisions: Made by customs and
traditions.
•Production: Based on customs and timehonored methods. New ideas are discouraged
•Private Property: None (things are owned by
the family or village)
•Trade: Very little outside trade because they
only make enough to meet their needs.
2 Main Production Methods For Traditional
Economies
1. Subsistence agriculture – growing only
enough to feed the farmer and his family.
2. Cottage industries –weave cloth, make
furniture and clothes by hand at home.
These are mostly found in rural, non-industrial
areas
What are these examples of?
What are these an example of?
At the bottom of the page, write one
positive and one negative of a
traditional economy
Free Enterprise = Capitalism = Free Market System
Economic Decisions: Based on supply and demand
Supply – how many there are
Demand – how much consumers will pay
Production: New ideas are encouraged
Ownership: People own their own goods and property with
limited government interference
•People invest their money in different ways (factories,
machines, and land)
•Profit???
Competition
Answer the questions in
your packet over
competition
Two Main Production Methods
Commercial Agriculture - Large scale
farming to sell; modern and requires less
labor
Commercial industries – goods are
manufactured in factories for sale
throughout the country or overseas
Commercial Agriculture
Commercial Industries
In your packet, explain how
commercial industries are
different than cottage
industries
In your packet, give two
examples of a commercial
industry
In your packet, explain how
commercial farming is
different than subsistence
agriculture
At the side of the section, write one
positive and one negative of a
capitalist / free - market economy
Karl Marx
1818-1883
(born in Germany)
Communism
(Command Economy)
Economic Decisions: Government makes ALL decisions
Ownership: No private property.
Government owns everything
Cooperation: Cooperation replaces competition
Goal: Classless society – equality among workers
At the bottom of the page, write one
positive and one negative of a
communist economy
Socialism
(Mixed Economy)
Economic Decisions:
Government makes decisions about production,
distribution, and use of resources
Other decisions are made privately
Ownership: Government owns major business
Private ownership of everything else
•Goal: End poverty by a fairer distribution of income among
society. People’s basic needs (health care, transportation,
education, housing) are met for free or at very low cost.
At the bottom of the page, write one
positive and one negative of a socialist
economy
Economic Systems
Command Economy
Communism
On the far left
Socialism
Left of center but
right of
communism
Market Economy
Capitalism
On the far right
Economic Activities
Economic Activities
#1 Primary Economic Activities: economic
activities which rely directly on natural
resources.
Forestry
Skorpion Zinc Mine, Namibia
Myanmar agriculture rice field
In the U.S. only 3% of the labor force.
What 2 types of agriculture would
be considered primary economic
activities?
Economic Activities
#2 Secondary Economic Activities: using raw
materials to produce products of greater
value.
Food processing
Manufacturing
Toy manufacturing in China
Car manufacturing in India
England Furniture
Manufacturing Plant,
USA
Refining
Gold Refining
Petroleum Refining
What 2 types of industries would
be considered secondary
economic activities?
Economic Activities
#3 Tertiary Economic Activities: economic
activities which do not use raw materials, but
serve others.
Service Industry
In the U.S. – 80% of labor force
What are 3 types of tertiary
economic activities?
Economic Activities
#4 Quaternary Economic Activities: economic
activities which focus on information.
What are 2 types of quaternary
economic activities?
Global Trade (Globalization)
• Exports: goods that are sent out of a country
• Imports: goods that are brought into a
country
Trade Routes
Impacted by technology
Industrial Development
Industrialized Countries
Political Stability GDP/GNP
Crime Levels
Women
employment
Average Income
% of Higher
Education graduates
Economic
Activity
Age Range of Pop
Development
Indicators
Standard of
Water pipes
Water Access
Calories per
person per day
Health Care
Death/Birth Ratio
Electricity
consumption
Ratio of doctors
# of computers
per person
per person
Life expectancy
# of TVs per person
Telephone
Communication