ECONOMIC GEOGRAPHY. ECONOMICS ANSWERS 3 BASIC QUESTIONS: WHAT AND HOW MANY GOODS AND SERVICES WILL...
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Transcript of ECONOMIC GEOGRAPHY. ECONOMICS ANSWERS 3 BASIC QUESTIONS: WHAT AND HOW MANY GOODS AND SERVICES WILL...
ECONOMIC GEOGRAPHY
ECONOMICS ANSWERS 3 BASIC QUESTIONS:
• WHAT AND HOW MANY GOODS AND SERVICES WILL BE PRODUCED?
• HOW WILLTHESE PRODUCTS BE PRODUCED?
• HOW WILL WEALTH FROM THE SALE BE DISTRIBUTED?
FOUR TYPES OF ECONOMIC SYSTEMS
TRADITIONAL
COMMAND
DEMAND
MIXED
TRADITIONAL ECONOMY
TRADITIONAL ECONOMIES
RELY ON BARTER,WHERE GOODS AND SERVICES
ARE TRADED WITHOUT
EXCHANGING MONEY
COMMAND ECONOMY
Examples: China, Cuba, North Korea
• Production of goods and services are determined by a central government
• Also called a PLANNED ECONOMY or COMMUNISM
• Consumers have no impact on the price or amount of goods produced
DEMAND ECONOMY
ALSO CALLED A MARKET ECONOMYOR CAPITALISM
PRODUCTION OF GOODS ANDSERVICES ARE DETERMINED BYDEMAND FROM CONSUMERS
EXAMPLE: UNITED STATES
MIXED ECONOMYCOMBINATION OFDEMAND ANDCOMMAND ECONOMIES
GOVERNMENTCONTROLSHEALTH CARE,INSURANCE, TRANSPORTATIONAND OTHER SERVICESFOR THE PUBLIC GOOD EXAMPLES: SWEDEN, DENMARK,
NORWAY
LEVELS OF ECONOMY ACTIVITIES
PRIMARY
SECONDARY
TERTIARY
QUATERNARY
PRIMARY ACTIVITIESTAKE A RAW
NATURAL RESOURCE
BUT DO NOT CHANGE THE FORM
OF THAT RESOURCE
EXAMPLES; FISHING, FARMING, LOGGING,
MINING
SECONDARY ACTIVITIES
TAKE THE
RAW MATERIALS
AND TURN THEM
INTO FINISHED
PRODUCTS
EXAMPLE: MANUFACTURING
TERTIARY ACTIVITIES
MAKE NO
PRODUCT,
BUT PROVIDE
SERVICES
EXAMPLES: TEACHERS,
DOCTORS, SALESPERSONS,
LAWYERS
QUATERNARY ACTIVITIES
PROVIDE
INFORMATION,
MANAGEMENT,
RESEARCH
SERVICES
EXAMPLES:
TECHNOLOGY,
COMMUNICATIONS
NATURAL RESOURCES• Renewable---Can be replaced
trees, fish
• Inexhaustible---Unlimitedsolar, geothermal, wind, tides
• Non-renewable--Cannot replaced
metals, fossil fuels, gems
MEASURING ECONOMIC DATA
WHAT IS GNP?WHAT IS GDP?
WHAT IS PER CAPITA
GNP?
COMPARING ECONOMIC DATA
• DEVELOPED NATIONS HAVE HIGH GNP AND HIGH DEVELOPMENT OF SECONDARY, TERTIARY, AND QUATERNARY ACTIVITIES
• DEVELOPING NATIONS HAVE LOW GNP AND HIGH LEVELS OF PRIMARY ACTIVITY, LOWER LEVELS OF SECONDARY ACTIVITIES