Economy of the South

The South

Resources and EconomyWhat snacks do you like?

Some people enjoy chicken wings. Others like peanut butter or orange juice. The raw materials for these

products are grown in the South.

Production in the South

Southerners use resources to produce goods and servicesExample: They use water moving through dams

to make electricity.Dams show how natural, human, and capital

resources work together. In this case, water, people, and machines work together to produce electricity. The Tennessee Valley Authority has 29 dams that make power.

Goods and Services from Natural Resources

Rich Soil = cotton fabric, orange juice, peaches, pecans, peanuts

Waterways = fish sticks, sea salt, boating, water power

Warm Climate = amusement parks, golf, vacation hotels

Oil and Gas = gasoline, plasticsCoal Deposits = coal, electricityForests = paper, lumber

Producers and Consumers

Producer: someone who makes or sells goods or services for consumers

Consumer: someone who buys or uses goods and services

Producers and Consumers Continued…

People can be BOTH producers and consumers.Example: A manufacturer in North Carolina

produces chairs. Before making a chair, the manufacturer will consume, or buy, wood, glue, and labor. The manufacturer is both a consumer and a producer.

Producers and Consumers Continued…

The South has many resources that producers can use to make products.

People grow more peanuts, cotton, rice, and sugar cane here than any other region

Coal and oil lie below the ground.Fish and shellfish live in the waters.

Producers and Consumers Continued…

Example of producers:Texas produces nearly 5,000,000 bales of raw

cotton. In other southern states, textile mills spin the

cotton to produce cotton yarn.Other manufacturers use the yarn to produce

cloth, t-shirts, towels, and other cotton products.

What factors of production are needed to create cotton t-shirts?

-Rich Soil

-Cotton plants

-Workers in textile mills

-T-shirt manufacturers

The Diverse Economy

FarmingManufacturingService IndustriesCoal MiningTourismGovernment

Farming

Texas, North Carolina, Georgia, and Florida rank in the top ten states for farm income.RiceCottonTobaccoSugar CaneOrangesChickensHogsCattle

Manufacturing

North CarolinaTextile Mills (cotton industry) employ 75,000

people.Make yarn, cloth, carpets, and rugs

Alabama, Arkansas, and GeorgiaMillions of acres of forest provide jobs in lumber

and paper industries

Coal Mining and Oil

West Virginia, Kentucky, and TexasCoal helps create power and energyThousands of people work in the oil industry

Aerospace

Texas and Florida rank in the top four states

Tourism and Service Industries

Many people visit southern states for vacations

One of the leading service industries in the South is ground and air transportation

Making Economic Choices

Consumers decide whether or not to buy something.

Producers try to provide goods and services that consumers will want to buy.They also choose which resources to use and set the

prices for their goods and services

Scarcity affects prices If there is a scarcity of something, the price goes up!

Opportunity Cost: what someone gives up to get something else

Government

Hundreds of thousands of southerners work for the government.U.S. GovernmentMilitary

Most live in Texas, Virginia, and Florida

Lesson Summary

ProducersUse resourcesMake choicesCreate goods and services for consumersCan also be consumers