1. World Geography Chapter 6
Human Systems
World Geography
Chapter 6

2. I. Economic Systems
An economic system is a mechanism (social institution) which deals with the production, distribution and consumption of goods and services in a particular society.
The economic system is composed of people, institutions and their relationships to resources, such as the convention of property. It addresses the problems of economics, like the allocation and scarcity of resources.

3. A. Economic Activities
Economic Activity: there are four levels of activity
Primary: uses natural resources directly (mining, farming, timber, fishing, hunting-gathering)
Secondary: producing; manufactures using primary resources (done where labor, energy, and land costs are a positive)

4. Economic Activities
Tertiary: provides a service; usually located near customers
Quaternary: processes and distributed information
Located anywhere
Access to skilled workers, transportation, communication systems
Requires specialized knowledge and skills
Refers to activities which involve the collection, recoding, arranging, storage, retrieval, exchange, and dissemination of information
Ex. Quaternary scientists seek answers to questions concerning past and present interactions among atmospheric, oceanic, and terrestrial systems, physical and biotic, during the time when the record is best preserved.

5. Economic Systems Answer three questions:
What and how many good and services?
How goods and services will be produced?
How products and wealth will be distributed?

6. B. Economic Systems
Traditional Systems: poor countries, food grown for one family/village only
A traditional economy is an economic system in which decisions such as the who, how, what, and for whom questions are all made on the basis of customs, beliefs, religion, habit, etc.
It has an advantage over other systems, in that there is little friction among members and is used by African tribes and was used by Native Americans. However, it restricts individual initiative and has a lack of advanced goods, new technology, and economic growth.
It is also found today in some parts of South America, Asia, and Africa. There, people still make clothing and shelter almost exactly the same way as they did in the past.

7. Economic Systems People choose what to buy and sell
Market Economy = Profit
People choose what to buy and sell
Free enterprise – competition among business determines price
Free enterprise is the basis of CAPITALISM (business, industry, and resources are privately owned)

8. Economic Systems Command economy – government decides everything
communist countries (China, Vietnam, North Korea, Cuba, Laos)
under communism the government controls/owns nearly all aspects of production

9. Economic Systems Many countries in Europe are socialistic
Socialism – The government and private business make the economic decisions
Many countries in Europe are socialistic
The government owns the major industries
HIGH TAXES, wealth is shared
called a mixed economy

10. Economic Systems
QUESTION: How would your life change under a different economic system?

11. C. Economic Patterns, Resources, and Technology
resources are needed
resources draw people/businesses
related businesses grow
business must find a way to get products to market
Ex. California Gold Rush

12. CHANGES IN TECHNOLOGY, TRANSPORTATION, COMMUNICATION AFFECT LOCATION AND PATTERNS OF ECONOMIC ACTIVITY

13. C. Economic Patterns, Resources, and Technology
Examples:
Refrigerated rail car
Communication: Morse code then phone then fax then computers
Public transportation
Has communication made it better for business?

14. II. Levels of Development
A. Measures of Development
Gross National Product – total value of goods and services that a country produces in a year
includes goods and services made by businesses owned by that countries citizens but located in other countries
Gross Domestic Product – goods and services produced within the country
more useful if presented as per person
Industrialization—process by which manufacturing based on machine power becomes widespread in an area

15. Gross Domestic Product (2015)

16. B. Standard of Living
Standard of Living – measured by the amount of personal income, levels if income, nutrition, literacy, health care, technology and life expectancy
Literacy – ability to read and write

17. Standard of living in the U. S
Standard of living in the U.S. This graph shows the percentage of the population earning the amount shown on the graph.

18. C. Developed and Developing Countries
Developed – richest, industrialized, high standard of living, high GDP, educated, long life
< 25% of the world’s population
low birth rate
service or manufacturing, good infrastructure (roads, hospitals, ports,
transportation, communication
global market economy – high energy usage

19. C. Developed and Developing Countries
Developing – less productive, low standard of living, low per capita GDP, $1 per day, high birth rate, little energy usage, mainly farming
moving to cities due to the lack of farm jobs
Middle Income – between rich and poor
Mexico, Brazil, Thailand
parts of developing and developed

20. World Literacy Rates