Discuss in Small Groups What are all the steps necessary for tomato sauce get from the farm to your kitchen?

Economics The study of how scarce resources are allocated in the face of unlimited wants Economic activity – Production – Consumption – Development & Growth

Economic Geography An Introduction

Economic Geography The study of how economic activity is distributed across space Questions: – Where do industries locate and why? – Why some places are relatively wealthy and others relatively poor? – How does economic globalization affect the world and our communities?

Economic Activity Classification based on level of removal from “ natural state ” Primary – Extraction – Gathering – Resources – Agriculture

Economic Activity Secondary – Value added to resource – Manufacturing – Processing – Construction – Utilities

Economic Activity Tertiary – Sale and distribution of finished goods – Retail and Wholesale Trade – Personal and Professional Services Quaternary – Information, research, management

Critical Thinking? Can you think of any generalizations we can make about location for each level of activity? – Primary – Secondary – Tertiary – Quaternary

Think About How do we figure out what the best agricultural land use is given competing crops? In particular, how close or far from a market center do we need to be?

Agricultural Land Use Von Thünen’s Model

What’s the Issue? Geographers are concerned with space and distance How are various agricultural crops distributed across space?

Johann Heinrich von Thünen German The Isolated State (1826) Spatial Economics –Economic Rent –What one would be willing to pay to be in a particular location

Assumptions 1.A featureless (isotropic) plain 2.Central city in isolation 3.Farmers transport goods to market by oxcart over land –there are no roads 4.Location will be a function of crop value, costs of production and distance to market

Bid Rent R = Y(p-c) – YFm –R = bid rent –Y = crop yield –p = price of crop –c = costs of production –F = Freight costs –m = mileage to market

Examples: Plot the Lines R=Y(p-c)-YFm  Per Y = 1, m =  Peppers  p = $20  c = $10  F = $2  Wheat  p = $16  c = $8  F = $1

Bid Rent Curves

Land Use Zones