1. Economics and Population

2. What is economics? Economics: The study of production, distribution, and use of goods and services. Measurement: - GNP (gross national product): Value of all goods and services that a country produces in one year. - GDP (gross domestic product): Includes only goods and services produced within a country.

3. What is economics? Per capita GDP= GDP divided by a countries population. – Shows individual purchasing power – Helps to compare levels of development. 4 Industries – Primary, secondary, tertiary and quaternary (See chart on page. 54 in textbook)

4. How are industrialized countries different from developing countries? Divide world into two groups using GNP, GDP, per capita GDP, life expectancy, and literacy. Developed countries= Industrialized (1 st world) – These are the world’s wealthiest countries. Ex. U.S., Canada, Japan, and most European. Developing Countries= Moving toward development (2/3 of World’s pop. is in this category) - 2 nd world. – Some don’t make economic progress for decades.

5. How are industrialized countries different from developing countries? Developing countries: – Ex: Russia, China, Eastern Europe, etc. Third-world countries: Sometimes considered developing. – Lack economic opportunities of industrialized countries. Ex. Some Latin American Countries= show little growth. Ex. Haiti= 4 th world= shows no growth.

6. How are industrialized countries different from developing countries? Literacy Rate: The percentage of people who can read and write in a country. Telecommunication systems/technology Birth Rate Health Care access Education access Income Life Expectancy

7. FILL OUT GRAPH!

8. Industrialized Countries Relies more on manufacturing Strong secondary, tertiary, quaternary industries Good health care and education systems High literacy rates Most people in cities, have access to telecommunications

9. Developing Countries Relies more on agriculture Most people in primary industries people looking for work in crowded cities Low levels of education Little access to health care or telecommunications

10. What are the different types of Economic systems? Free enterprise: Organized around the production and distribution of goods and services. (i.e. most developed countries) – Market Economy: Business owners and customers make decisions about what to make, sell, and buy. Command Economy: Government decides how much and what to make, sell, and buy. (Communism- only 5 countries in the world today)

11. What are the different types of Economic systems? Tradition-based: based on customs and tradition. – Based on laws, religious beliefs, rituals, or habits developed by the society long ago. Mixed Economy: (Most countries have this and their economies are based on at least two of the other economic systems. One-crop economy- based on a single crop (i.e. bananas or sugarcane)

12. Developed Countries Economy= Free enterprise/Market Political System= democracy Developing Countries Economy= government controlled, command Political System= communism

13. What are the different types of Economic systems? International trade is important in determining a countries economy: – Exports: products sold to other countries. – Imports: products a country buys from other countries. (Usually things that are NOT produced or available in the country that is buying the item. Interdependence: Occurs between countries when they depend on each other for resources or goods and services. – Industrialized countries may depend on raw materials of developing countries. – Developing countries may depend on finished goods and technology of industrialized countries.

14. Where do most people on Earth live? Population density: How many people live closely together. Dividing the countries population by its area. – (Square miles or Square Kilometers) Overpopulation: Country has an extremely high population density and cannot support its people without outside help. Birthrate: Number of births per 1,000 people per year. Death rate: Number of deaths per 1,000 people per year. Migration: movement of people Emigrant: someone who leave one place for another Immigrant: someone arriving from another country.