ECONOMIC GEOGRAPHY

WHAT DO YOU MEAN BY ECONOMY? Making and exchanging goods and services -like Nike shoes -or, hiring a lawn service

BUT HOLD ON; IT’S NOT THAT SIMPLE There are different types of “economic systems”

TRADITIONAL ECONOMY Making enough for self and family, little surplus to sell $ rarely used, just trade stuff -“bartering”

MARKET ECONOMY Production of goods is based on making a profit -determined by consumer demand (supply and demand) -little government involvement (like in USA)

COMMAND ECONOMY The government decides what is made, how much is made, & the price -not based on consumer demand Found in communist countries like Cuba

LEVELS OF ECONOMIC DEVELOPMENT Developing- mainly farming, few factories, weak economy, poor countries Developed- farming & industry, strong economy, high literacy and education

MEASURING ECONOMIC DEVELOPMENT GDP -total value of all goods made in a country Per capita income -average amount of $ per person in a country

MEASURES, CON’T. Natural resources -type, amount, Standard of living accessibility Standard of living -literacy rate, life expectancy, #of doctors, etc.

THE GLOBAL ECONOMY Interdependent -countries are closely connected and dependent on one another