Presentation on theme: "Economic Geography. I. Economic Systems A. Traditional - Barter and trade. (1 cow for 5 pigs?) B. Communism - Economy determined by the government (command)."— Presentation transcript:
I. Economic Systems A. Traditional - Barter and trade. (1 cow for 5 pigs?) B. Communism - Economy determined by the government (command). The government owns all the means of production (the factories and the farms).
C. Free Enterprise - Economy determined by consumers competition (free market or capitalism). D. Mixed - Most countries have a mix of command and market economies. Sometimes called Socialism (in between free enterprise and communism).
Economic Spectrum Pure Communism, Pure Free Enterprise Sometimes called: Planned Economy or Command Economy Sometimes called: Free Market, Market Economy, or Capitalism Mixed Economy
Economic Spectrum Pure Communism, Pure Free Enterprise Mixed Economy Technically Socialism is the Command Economy However in America many politicians call the Mixed Economy Socialist
Economic Spectrum Pure Communism, Pure Free Enterprise Mixed Economy Cuba & North Korea France & Sweden Germany United Kingdom United States Singapore
Economic Spectrum Pure Communism, Pure Free Enterprise Mixed Economy United StatesDemocrats Republicans
II. Levels of Economic Activity A. Primary - gathering raw materials. Mining
V. Measuring Economic Development A. per capita income - average amount of money earned by each person in a country. -U.S. - $46,900* - Japan - $34,000* - China - $3,000* - Haiti - $1,300* 2008 estimate (not in PPP**) ** PPP = Purchasing Power Parity
B. Gross Domestic Product - Total value of goods and services produced by a country. *U.S. - $14.26 trillion (world’s largest economy) (that’s $14,260,000,000,000) *China - $7.97 trillion (2 nd largest) *Japan - $4.92 trillion (3 rd largest)
C. Development Levels 1. More developed Countries – have a higher per capita income and higher standard of living 2. Less developed Countries – have a lower per capita income and lower standard of living
3. Standard of Living – The quality of life in a country. More Developed Countries (MDCs) Less Developed Countries (LDCs) Low Infant Mortality Rate High (bad) Infant Mortality Rate High Life ExpectancyLow Life Expectancy High Literacy RateLow Literacy Rate Industrial or Service Sector Jobs Mostly Agricultural Jobs
Standard of Living - Example More Developed United States Less Developed Haiti Per Capita Income $46,900$1,300 Infant Mortality Rate (per 1,000 live births) 6.2659.69 Life Expectancy 78.11 years60.78 years Literacy Rate 99%52.9% Economic Sector ServicesAgricultural
C. Development Levels 3. Newly industrialized Countries – are in between More Developed and Less Developed Countries in per capita income and higher standard of living