Economic Geography

• Geography
• 6th Grade

Economic Sytems

Economy- consists of the production and exchange of goods and services among a group of people. 

Economies operate on a local, regional, national, or international level. 

Geographers study economic geography by looking at how people in a region support themselves and how economic activities are linked across regions. 

Types of Economic Sytems

Traditional Economy- goods and services are traded without exchanging money.  Also, called "barter"

This was common during the gold rush or when settlers headed west during the expansion.  Some people still use a barter system today. 

 

Have you ever used a barter system?

yes

No

No clue what you are talking about.

Command Economy- production of goods and services is determined by a central government, which usually owns the means of production. Production does not necessarily reflect consumer demand. 

Countries: Cuba, North Korea and the former Soviet Union.

Market Economy

The production of goods and services is determined by the demand from consumers.  Also, called a demand economy or capitalism.   Hong Kong, Singapore, New Zealand, Switzerland, Ireland.

This type of economy leads to greater efficiency, productivity, and innovation

Why do you think a market economy leads to greater efficiency, productivity, and innovation

Mixed Economy

This Economy is a combination of command and market economies that provides good sand services so that all people will benefit. 

 the United States, the United Kingdom, Sweden, Iceland, France, and Germany all have mixed economies. 

What economic system do you like and would like to see more of?

Command

Traditional

Market

Mixed

Levels of Economic Activity

People may choose from a variety of methods to meet their basic needs. 

Some raise enough for themselves that's it. This is called subsistence agriculture.  

Market-oriented agriculture produces crops or animals that farmers sell to markets for money. 

Economic Activities

In some places, industries dominate economic activities.  Small industries such as family-owned or cottage industries.

Commerical industries are the biggest and they meet the needs of many people within a very large area.  Economic behaviors are related to the economic activities listed on the next few slides.

Levels of economic Activity 

No matter how small or large a business is, it operates at one of four economic levels.  The four levels of economic activity describe how materials are gathered and processed into goods or how services are delivered to consumers. 

Economic Activities

Primary Activities involve gathering raw materials such as timber for immediate use or to use in the marking of a final product. 

Secondary Activities involve adding value to materials by changing their form.  Manufacturing automobiles is an example

Economic Activities

Tertiary Activities involve providing business or professional services.   Examples: Salespeople, teachers, or doctors are examples

Quaternary Activities- provide information, management, and research services by high-trained people.

The more developed an economy is, the greater the number and variety of activities you will find. 

Natural resources

Natural resources are materials on or in the earth- such as trees, fish, or coal.

Renewable- These resources can be replaced through natural processes. Examples include trees and seafood. 

Non-renewable- resources cannot be replaced once they have been removed.   Examples- are gold, silver, iron, and non-metals such as gemstones, limestone, or sulfur.  Also, included are fossil fuels, petroleum, natural gas, and coal. 

Inexhaustible energy sources- these resources, which are sued for producing power are the result of solar and are unlimited in quantity.   They include sunlight, geothermal heat, winds, and tides. 

Infrastructure- consists of the basic support system needed to keep an economy going. 

per capita income- the average amount of money earned by each person in a political unit. 

Gross national product- the total of all goods and services produced by a country over a year. 

Gross Domestic product- which is the total value of all good and services produced within a country in a given time period. 

What are four basic economic systems

What are three types of resources?

What roles do natural resources play in the economy of a country?