Economic Geography. I. Economic Systems A. Traditional - Barter and trade. (1 cow for 5 pigs?) B. Communism - Economy determined by the government (command).

Economic Geography

I. Economic SystemsA. Traditional - Barter and trade. (1 cow for 5 pigs?)

B. Communism - Economy determined by the government (command).The government owns all the means of production (the factories and the farms).

C. Free Enterprise - Economy determined by consumers competition (free market or capitalism).

D. Mixed - Most countries have a mix of command and market economies. Sometimes called Socialism (in between free enterprise and communism).

Economic Spectrum

Pure Communism, Pure Free

Enterprise

Sometimes called:

Planned Economy or Command Economy

Sometimes called:

Free Market, Market

Economy,

or Capitalism

Mixed Economy

Economic Spectrum

Pure Communism, Pure Free

Enterprise

Mixed Economy

Technically Socialism is

the Command Economy

However in America many politicians call

the Mixed Economy Socialist

Economic Spectrum

Pure Communism, Pure Free

Enterprise

Mixed Economy

Cuba &

North Korea

France & Sweden

Germany

United Kingdom United States

Singapore

Economic Spectrum

Pure Communism, Pure Free

Enterprise

Mixed Economy

United StatesDemocrats

Republicans

II. Levels of Economic Activity

A. Primary - gathering raw materials.

Mining

Strip Mining

Farming

Lumber

B. Secondary - Making a product.

• Lumber Industry– Primary Activity

• Furniture Industry– Secondary Activity

• Secondary activities take place in:– Factories (Industrial)– Homes or workshops

(cottage industries)

• Mining Industry (metals) - Primary Activity

• Automobile Industry - Secondary Activity

C. Tertiary - Business or professional services.

*restaurants

*teachers

*Banks

*stores

*doctors

D. Quaternary - provide information, management and research by highly trained persons.

*business manager

*research scientist

• III. Natural Resources - Materials taken from the earth.

A. Renewable (Inexhaustible Energy) - Resources that can be replaced.

Renewable Resources include;

*Wind

*Sun (solar)

*Water (hydro)

*Geothermal

*Timber

Geothermal Energy

B. Non-Renewable - Resources that can not be replaced.

Examples include;*oil *coal*natural gas*minerals

IV. Infrastructure - A countries support system. Includes:

1. roads

2. water supply

3. power supply

4. education

system

Infrastructure

Infrastructure

• Sewer system

V. Measuring Economic DevelopmentA. per capita income - average amount of money earned by each person in a country.

- U.S. - $46,900*- Japan - $34,000*- China - $3,000*- Haiti - $1,300*• 2008 estimate (not in PPP**)• ** PPP = Purchasing Power Parity

Per Capita Income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

U.S. Japan China Haiti

U.S.

Japan

China

Haiti

B. Gross Domestic Product - Total value of goods and services produced by a country.

*U.S. - $14.26 trillion (world’s largest economy)

(that’s $14,260,000,000,000)

*China - $7.97 trillion (2nd largest)

*Japan - $4.92 trillion (3rd largest)

GDP - Gross Domestic Product in trillions

$14.26

$7.97

$4.92

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

U.S. China Japan

U.S.

China

Japan

C. Development Levels1. More developed Countries – have a higher per capita income and higher standard of living

2. Less developed Countries – have a lower per capita income and lower standard of living

3. Standard of Living – The quality of life in a country.

More Developed

Countries (MDCs)

Less Developed

Countries (LDCs)

Low Infant Mortality Rate

High (bad) Infant Mortality Rate

High Life Expectancy Low Life Expectancy

High Literacy Rate Low Literacy Rate

Industrial or Service Sector Jobs

Mostly Agricultural Jobs

Standard of Living - ExampleMore Developed

United States

Less Developed

Haiti

Per Capita Income $46,900 $1,300

Infant Mortality Rate (per 1,000 live births)

6.26 59.69

Life Expectancy 78.11 years 60.78 years

Literacy Rate 99% 52.9%

Economic Sector Services Agricultural

C. Development Levels

3. Newly industrialized Countries – are in between More Developed and Less Developed Countries in per capita income and higher standard of living