Economy
Dec 13, 2015
Economy
• Work• Making things• Buying things• Trading
• All of these examples are ways that our Economy is stimulated.
How does our text define Economics????
• Economics– The study of the production, distribution, and
use of goods and services.
Can you tell me how we measure a country’s Economy???
Measuring our Economic Value• GDP…
– Gross Domestic Product• Defined as the value of all goods and services that a
country produces in one given year.
• Gross Domestic Product can also tell you about a country’s Standard of Living..
The __________ a country’s standard of living, the higher the GDP will be…
The __________ a country’s standard of living, the lower the GDP will be….
2 Types of Countries…
• The countries of the world are divided into two different categories based on the country’s industrialization….
• Industrialized Countries
• Developing Countries
Industrialized Countries
• Countries are classified as Industrialized when….– The country has more manufacturing and less
agriculture..– Access to Healthcare Systems– High Literacy Rate
• Examples…– USA, Canada, Japan, as well as most European
Countries.
Developing Countries• Developing countries are moving toward
industrialization..– 2/3s of the worlds people live in developing
countries.
• Characteristics of developing countries…– Poor, primary industries– Fishing, Farming, Mining, and Forestry– Crowded Cities, low Literacy Rate– Limited access to Healthcare– Examples…
• Mexico and S. Korea
2 types of Developing Countries
• Third World Countries…– Show some economic growth. These
countries lack the economic opportunities of most industrialized countries.
• Fourth World Countries….– Countries that show no economic growth.
Study this Chart…...Country Population Population
Growth RatePer Capita GDP Life Expectancy Literacy Rate Telephone Lines
United States 290.3 million 0.9% $37, 600 77 97% 194 million
France 60.1 million 0.4% $26,000 79 99% 35 million
South Korea 48.2 million 0.% $19,600 75 95% 24 million
Mexico 104.9 million 1.4% $8,900 72 92% 9.6 million
Poland 38.6 million 0.0% $9,700 73 99% 8 million
Brazil 182.1 million 1.1% $7,600 71 86% 17 million
Egypt 74.7 million 1.8% $4,000 70 57% 3.9 million
Myanmar 42 milllion 0.5% $1,700 55 83% 250,000
Mali 11.6b million 2.8% $900 45 46% 23,000
Looking at the Chart in your book….
• What countries have the highest GDP?
• What countries have the highest Literacy Rates?
• What might this connection be?
3 Types of Economies
• Market or Free Enterprise Economies
• Command Economies
• Tradition Based Economies
• Mixed Economies
Market or Free Enterprise
• An economy in which business owners and consumers make all economic decisions about what to make, sell, and buy.
Command Economies
• An economy in which the government owns most of the industries and makes most of the economic decisions.