1. Resources and Economies

2. Natural Resources
Materials in the natural environment that people value and use to satisfy their needs.
In this class we are interested in….
How people use world resources.
Where resources are located.
How resources are distributed.

3. Natural Resources
Materials in the natural environment that people value and use to satisfy their needs and wants.
Give some examples of natural resources you use on a daily basis.
Now… how would you need to adjust if that resource was no longer available?

4. Renewable Resources
Regenerated or replaced by the environment

5. Renewable energy sources
Geothermal Energy: produced from the earth’s internal heat

6. Nonrenewable Resource
Cannot be replaced once used

7. Energy Sources
Fossil Fuels: formed by ancient plant and animal remains (over millions of years)
Unevenly spread around the world
Likely to run out
Causes pollution

8. Cost of gas…
$1.95 a gallon

9. Cost per gallon Global Gas Prices United States $1.95 Spain $4.55
Italy $5.96
France $5.54
Denmark $5.93
Saudi Arabia $0.91
Egypt $0.65
Nigeria $0.38
Venezuela $0.12
Cost per gallon

11. What is a natural resource?
Discuss with a partner
What are the two main categories of resources?

13. Since there is not an unlimited amount of resources how do we get the things we need?
Scarcity

14. Economic Activities
Economic Activities: what people do in order to acquire the things they need and the luxuries they desire.
4 categories
Primary
Secondary
Tertiary
Quaternary

15. Economic Activities
1. Primary Economic Activities: rely directly on natural resources
Examples: fishing, forestry, mining, farming, hunting/gathering, herding
Subsistence Farming VS Commercial Farming

16. Economic Activities
2. Secondary Economic Activities: people use raw materials to produce new products of greater value
Examples: pressing wheat to make flour, manufacturing
Cottage Industry VS Commercial Industry

17. Economic Activities
3. Tertiary Economic Activities: do not directly gather or process raw materials – instead they pursue activities that serve others
Examples: doctors, salespeople, truck drivers, firefighters, police

18. Economic Activities
4. Quaternary Economic Activities: acquisition, processing, and sharing of information
Examples: education, government, information processing, research, Lawyers

23. Discuss with a partner
What is the difference between a primary and a secondary economic activity?
What is a natural resource?
What is the difference between renewable and non renewable?
What are some things countries are doing to prepare for a future with less oil?

24. How resources are distributed

25. Consider this…

26. 2014 Production

27. Resource Distribution
The earth’s resources are not evenly distributed around the world
Affects: where people live, economic activities, trade, and leads to war.

30. Global Trade Patterns Exports: goods sent out of the country
Imports: goods brought into the country
Deficit = our businesses lose profits

31. Is a trade Deficit Bad?

32. Economic Systems
1. Traditional Economy – families produce what they need - (personal use/little trade)

33. Economic Systems
2. Market Economy – (Free enterprise) – Capitalism (United States)
Private individuals/groups decide what to produce, how much to produce, and at what price
Law of supply and demand

34. Economic Systems
Command Economy – controlled by a single, central government
Economic decisions made by government leaders
Decisions made to achieve social or political goals (Communism)

35. Economic Systems Mixed Economy – mixture of all three Socialism
Government should run some industries
Government should provide some goods and services
To pay for services, usually impose high taxes

36. Why is it so difficult for these different systems to exist side by side in the global economy?

37. Read and answer Read pages 115 – 119
Answer the following section 2 assessment questions from page 119.
2, 3, 4

38. Discuss these with a partner
What factors affect the location of different types of economic activities?
How does the distribution of resources affect global trade patterns?
How do GDP and standard of living differ between the developed and developing nations?

39. What factors affect the location of different types of economic activities?
Primary can be found where natural resources can be gathered.
Secondary will be found near raw materials, a market to buy the goods and near a labor force.
Tertiary is near people who need the service.
Quaternary will be found in modern economies and tend to be near a skilled work force.

40. How does the distribution of resources affect global trade patterns?
Countries export what they have in abundance and seek out imports of the items they lack.

41. How do GDP and standard of living differ between the developed and developing nations?
Developed has a high standard of living and stronger GDP’s than the developing world.

42. Take out your notes for a quiz

43. Quiz (16 points) Define the term natural resource.
What is geothermal energy?
Compare and contrast renewable and nonrenewable resources.
List the 4 economic activities
Is having a Deficit a bad thing when it comes to trade?
What factors impact the location of different types of economic activities?
How does the distribution of resources impact global trade patterns?