ECONOMIC GEOGRAPHY – THE BASICS World Regional Studies

Economic Geography  Today, we will be examining economic geography by filling out an organizer  Use the PowerPoint to help with what the concept means  Then identify examples for each concept

What is an economic system?  Economic System: the organized way people produce and exchange goods

Types of Economic Systems  Traditional Economy: Goods and services are traded without exchanging money…also called barter(trade)  Goods are produced based on ritual and custom and what a society needs  Less developed and agricultural based  Examples?

Types of Economic Systems  Command Economy: Production of goods and services is determined by a central government, which usually owns means of production (land, factories, etc.)  Production does not necessarily reflect consumer demand (what people want)  Also called COMMUNISM!, SOCIALISM, MARXISM and a planned economy  Examples?

Types of Economic Systems  Market Economy: Production of goods and services is determined by the demand from the consumers  Also called capitalism,free market economy, or Laissez- faire economics  Any true market economies?

Types of Economic Systems  Mixed Economy: Combination of command and market economies  Has both privately owned property/businesses and government control  Examples?

Levels of Economic Activity  Primary - gathering raw materials  Examples?  Secondary - change the materials to add value  Examples?  Tertiary - provide professional services to sell/use materials  Examples?

Natural Resources  Materials on or in the earth that have economic value  Examples?

What is infrastructure?  Basic support systems needed to keep an economy going  Includes transportation, power systems, communication systems, etc.  Examples? (Be specific)

Types of Natural Resources  Renewable - resources that can be replaced through the earths natural processes  Examples?  Non-renewable - Resources that cannot be replaced once they have been removed from the ground  Examples?  Inexhaustible energy sources – primarily energy resources which never run out  Examples?

Economic Comparisons  Per capita income – average amount of money earned by each person in a political unit  Gross National Product - total value of goods and services produced by a country over a year  Gross Domestic Product – total value of goods and services produced within a country over a year  How are GDP and GNP different?

Economic Classifications  Developing country – poor infrastructure, high crime, poverty, low standards of living, low GDP and income, lack of basics and technology, unstable  Examples?  Developed country – good infrastructure, higher standards of living, high GDP, good technology, stable  Examples?