Bell Ringer Answer the following questions in a short paragraph: 1.What is the condition of the US...

Bell Ringer

• Answer the following questions in a short paragraph:

1. What is the condition of the US economy right now?

2. Why is it in this condition?

3. How does this affect you or your family?

Economic Geography

Objective:

Students will be able to identify and distinguish b/w different types of economic systems from various regions.

What is an Economy?Production or exchange of goods and services by a group

What are goods and services?Goods – things to be traded, bought, or soldServices – things people do for others in exchange for payment

Labor – work force, the workers

What is Supply and Demand?

•Supply – how much is available from market •Demand – how much is wanted by consumers

What is the “Law of Supply and Demand”?

• As supply increases, price goes down.

• As demand increases, price goes up.

• How much something costs is mainly a function of these two factors.

What are GNP and GDP?GNP – “Gross National Product”

Total value of all goods and services by a country over one year. Includes facilities overseas owned by domestic companies.

GDP – “Gross Domestic Product”

Total value of all goods and services within a country’s borders over one year. This is a good indicator of the size of a country’s economy.

Examples (2010 est.)USA – $14.5 trillionMexico – $1.0 trillionJapan – $5.4 trillionChina - $5.8 trillionSudan - $0.07 trillion

What is Per Capita GDP?• GDP per 1000 people, how “wealthy” the country is.

• Roughly the amount of $$$ earned per person in a political unit per year. Similar to “Per Capita Income”, but not exactly the same.

• Examples? U.S. = $47,000 Mexico = $14,000 Japan = $33,000 China = $7,500 Sudan = $2300

What is Infrastructure?Basic support system to keep or start an economy going

• Roads

• Electricity

• Water

• Airports

• Ports

• Trains

What are the 4 Economic Employment Sectors?Different levels of employment (jobs) based on variety of factors

1. Education level required to perform task2. Location (geographic – available resources)3. Location (to appropriate market)

• Gathering raw materials – natural resources taken from the earth

• Example: Mining, Fishing, Farming

Primary Employment Sector

• Manufacturing / Industry - Adding value to raw materials by changing their form

• Example: Iron changed into an automobiles

Secondary Employment Sector

• Business or professional services

• Example: teachers, retail salespeople, doctors

Tertiary Employment Sector

• Provide info, research, management, etc. by highly trained personnel

• Managers, scientists, software designers

Quaternary Employment Sector

What are the 4 basic types of economic systems?

• Traditional• Command• Market• Mixed

•Traditional Economy

- Goods and services are exchanged without money

-Also called “Barter”

-Example: Primitive societies

Market Economy• Goods and services are determined through Supply and Demand• Also called “Free Market Economy” or “Capitalism”. • Example: United States, in theory

• Production of goods and services determined by the government.• Also called “Planned Economy”• Example: Communist countries

Command Economy

Mixed Economy

• Combination of command and market economies

• Goods and services for benefit of all

• Example: Japan, Peoples’ Republic of China

Economic Stages of Development

Least Developed Country• GDP: Nearly none – collaped.

• Per Capita Income: Very Low (less than $1000/yr)

• Employment Sectors: “Primary” if any at all

• Infrastructure: Very little to none– Lack of electricity– Lack of clean water– Lack of roads, Airports, Ports

• Quality of Life: In crisis, collapsed infrastructure and economy.

• Examples: Afghanistan, Somalia, Haiti

Developing Country

• GDP: Low

• Per Capita Income: Low

• Employment Sectors: Mostly “Primary”

• Infrastructure: Relatively little– Lack of electricity– Lack of clean water– Lack of roads, Airports, Ports

• Quality of Life: Low, little literacy, nutrition, or medical care

• Examples: Burma, Jamaica, El Salvador

Newly Industrialized Country (NIC)• GDP: Low/Medium but increasing

• Per Capita Income: Low/Medium but increasing

• Employment Sectors: “Primary” shifting to “Secondary” to varying degrees

• Infrastructure: Increasing– Things are being built as wealth increases– Long process, very expensive

• Quality of Life: Still low in most places, but improving in many ways

Examples: IndiaMexico

Developed Country• GDP: High

• Per Capita Income: High

• Employment Sectors: Mostly “Tertiary” and “Quaternary”

• Infrastructure: Strong– High amount of roads, Airports, Ports– Clean water systems– Electricity available to all

• Quality of Life: High, with good nutrition, medical care, education

Which picture best

fits each economic

level?

Picture A

Picture B

Picture C

Picture D