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

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

3. Economic Geography An Introduction

4. 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?

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

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

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

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

9. 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?

10. Agricultural Land Use Von Thünen’s Model

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

12. Johann Heinrich von Thünen 1783-1850 German The Isolated State (1826) Spatial Economics –Economic Rent –What one would be willing to pay to be in a particular location

13. 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

14. 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

15. Examples: Plot the Lines R=Y(p-c)-YFm  Per Y = 1, m = 1 - 5  Peppers  p = $20  c = $10  F = $2  Wheat  p = $16  c = $8  F = $1

16. Bid Rent Curves

17. Land Use Zones