Economic Activity

Types of Economic Activities

Primary Economic Activity• Fishing- tuna fishing• Forestry• Mining/drilling• Agriculture (based on land and

climate)– 50% of less developed countries– 15-20% newly industrialized– <8% of developed countries

• Commercial Agriculture: produced to sell• Subsistence Ag.: provide for your family

Primary Economic Activity cont’d…

• Subsistence Farming– Grow enough for family

or village

• Commercial Farming– Use modern techniques– Only small # of workers

needed– Found in all countries– Plantations- found in

newly industrialized• Who owns most

plantations?

Secondary Economic Activity

• Manufacturing- Industry– Takes raw material and turns into a

finished products

– Tuna into Canned Tuna

What are some examples of manufacturing in the United States? In what regions? Cities?

Tertiary Economic Activity

The Service Industries• Transportation• Sales• Advertising• Government-some• Health Care• Banking• Education- some

Quaternary Eco Activities

Collecting, processing and distributing information

• government, culture, libraries, scientific research, education, and information technology.

Stages of Economic Activity Developed Country

Modern Technology Mostly Tertiary Eco.

Activities (Service) Well developed economy GDP per Capita: USA $46,000 Has sustainable

development Outsourced manuf. when

costs can be cut.

Less Developed Limited modern

technology Dependent on

developed countries for manufactured goods.

GDP per capita: ~$1000

Mostly primary and secondary eco. activities

•Newly IndustrializedMexico $15,600 (2012)

13% Agric

Zimbabwe- What stage am I?

$600.00 GDP per capita

66% Agric.

38% urban

3.8 Fertility rate

Know these front and backwards!!!

• Primary- Agriculture

• Secondary- Manufacturing (industry)

• Tertiary- Service

• Quaternary- data

USA 1.1% Agriculture (primary)• 22.1 % Manufacturing• 76.8% Service (Tertiary)• Can U say “Sustainable development”

– Hmmm– Monaco 95% service!!!

Mexico(Newly Indust) 13% Agric, 24% Manuf., 63% Service

Bangladesh 18% Agric,28% Manuf., 52% ServiceZimbabwe(less developed) 66% Agric, 10% manu., 24% Service

What are some examples of raw materials in your

community?What kind of finished product

can be made from this?

Primary

Standard of Living(Daily Life)- look at all these

things• Life expectancy

• Infant mortality rate

• GDP per capita

• # of people per car

• Energy consumption

• Literacy rate

• Traditional Economy

• Human Resources– Workers- a country’s greatest resource! YOU!

• Capital Resources– Machines– Money (Investments)– Buildings

Compare a contractor with a hammer and nail to one with lumber, a toolset and backhoe.

Which one represents the less developed country?

Which one represents the developed country?

Supply and Demand

•As the price goes up, what happens to the demand?

• Real life-

•As the price is reduced, what happens to the supply of goods?

Economic Systems answer these questions…

What will be produced?

How much will be produced?

How will it be distributed?

What will it cost?

Economic Spectrum

No government

Total government control

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Economic Spectrum

Strong Government

No government

• Command Ec

• Communism

•Karl Marx

•Gov’t regulates all

•Central planners

• Socialism/ Mixed

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• Free-Market

• Capitalism

• based on profit

• private ownership

•entrepreneurship

Matching: Communism, socialism, capitalism, traditional

Consumers make the decisions Welfare state Free doctors visit CNN, Fox, Comcast, Ixfinity, CBS, ABC, NBC Clay pots from hand Profit is motive for doing well Community farms Reebok, Nike, Addidas,… No social classes Follow parents line of work 93Q, the Eagle, 104 KRBE, 740 Talk Radio,