ECONOMIC SYSTEMS AND

ACTIVITIES

*PRIMARY ECONOMIC ACTIVITY

TAKES SOMETHING DIRECTLY FROM THE EARTH

*SECONDARY ECONOMIC ACTIVITY

MAKES SOMETHING MORE USEFUL OR VALUABLE

*TERTIARY ECONOMIC ACTIVITY

PROVIDES SERVICES

*QUATERNARY ECONOMIC ACTIVITY

PROCESSES AND DISTRIBUTES INFORMATION

*SERVICE INDUSTRY

PROVIDES SERVICES (INTANGIBLES) RATHER THAN GOODS (TANGIBLES)

*SUBSISTENCE AGRICULTURE

FARMING IN WHICH JUST ENOUGH IS PRODUCED TO MEET NEEDS – VERY LITTLE EXTRA TO SELL OR

TRADE (GROW TO EAT TO LIVE)

*COMMERCIAL AGRICULTURE

LARGE SCALE FARMING WHERE FOOD IS GROWN TO SELL

*COMMERCIAL INDUSTRY

LARGE SCALE PRODUCTION OF GOODS TO SELL

*COTTAGE INDUSTRY

SMALL SCALE INDUSTRY BASED IN THE HOME

*TECHNOLOGICAL INNOVATION

NEW, ADVANCED PRODUCT OR IDEA BASED ON MODERN SCIENCE

*INFRASTRUCTURE

SYSTEM OF ROADS, PORTS, UTILITIES, ETC. NEEDED FOR A SUCCESSFUL COUNTRY (THE BONES OF A COUNTRY)

*INDUSTRIALIZATION

MACHINE POWER REPLACES ANIMAL POWER

*LESS DEVELOPED COUNTRIES

COUNTRIES THAT ARE NOT ECONOMICALLY PRODUCTIVE AND HAVE A LOW STANDARD

OF LIVING

*NEWLY INDUSTRIALIZED COUNTRIES

A FEW MODERN CITIES AND MANY POOR RURAL AREAS

*MORE DEVELOPED COUNTRIES

COUNTRIES WITH A HIGH STANDARD OF LIVING AND A HIGH LEVEL OF

INDUSTRIALIZATION

*LITERACY RATEPERCENTAGE OF PEOPLE WHO CAN

READ AND WRITE

*LIFE EXPECTANCY

AVERAGE NUMBER OF YEARS A PERSON BORN IN A CERTAIN YEAR IS EXPECTED TO

LIVE

*INFANT MORTALITY RATE

NUMBER OF BABIES WHO DIE BEFORE AGE ONE FOR EVERY 1,000 LIVE BIRTHS

*STANDARD OF LIVING

MEASURE OF QUALITY OF LIFE (INCOME, EDUCATION, FOOD, ETC.)

*HUMAN DEVELOPMENT INDEX (HDI)

RANKING OF COUNTRIES ACCORDING TO THEIR STANDARD OF LIVING

*GROSS DOMESTIC PRODUCTTOTAL VALUE OF GOODS AND SERVICES PRODUCED

WITHIN A COUNTRY (GDP)

*PER CAPITAAVERAGE PER PERSON

*GROSS NATIONAL PRODUCTTOTAL VALUE OF GOODS AND SERVICES PRODUCED BY A

COUNTRY (ANYWHERE) (GNP)

*SCARCEDEFICIENT IN QUANTITY OR

NUMBER; NOT ENOUGH

*CURRENCYPAPER MONEY/COINS USED TO

EXCHANGE FOR GOODS/SERVICES

*CAPITAL

GOODS (SOMETHING) USED TO PRODUCE OTHER GOODS

EXAMPLES: MONEY, MACHINERY, PEOPLE

*BALANCE OF TRADEDIFFERENCE BETWEEN THE VALUE OF A COUNTRY’S IMPORTS AND EXPORTS

* TRADE SURPLUS

VALUE OF EXPORTS IS GREATER THAN VALUE OF IMPORTS (MAKING MORE

MONEY THAN YOU ARE PAYING)

*TRADE DEFICIT

VALUE OF IMPORTS IS GREATER THAN VALUE OF EXPORTS (PAYING MORE MONEY THAN YOU ARE

MAKING)

*TARIFFTAX ON IMPORTS/EXPORTS

*QUOTALIMIT ON THE AMOUNT OF A PRODUCT

THAT CAN BE IMPORTED

*IMPORTSPRODUCTS BOUGHT BY A COUNTRY

FROM OTHER COUNTRIES

*EXPORTSPRODUCTS SOLD BY A COUNTRY TO

OTHER COUNTRIES

*FREE TRADE ZONEREGION WHERE COUNTRIES AGREE TO

REDUCE OR ELIMINATE TRADE BARRIERS

*MARKET ECONOMYPEOPLE CHOOSE WHAT TO BUY AND

SELL

SUPPLY AND DEMAND

*CAPITALISM

BUSINESSES, INDUSTRIES, AND RESOURCES ARE PRIVATELY OWNED

*FREE ENTERPRISE

PEOPLE OWN THE MEANS OF PRODUCING AND DISTRIBUTING GOODS AND SERVICES;

COMPETITION DETERMINES PRICES; PEOPLE HAVE THE RIGHT TO SUCCEED OR FAIL

*TRADITIONAL ECONOMYBASED ON CULTURAL TRADITIONS;

OFTEN SUBSISTENCE ECONOMY

*COMMAND ECONOMY

GOVERNMENT OWNS AND CONTROLS MOST PRODUCTION AND DISTRIBUTION

(USUALLY ASSOCIATED WITH COMMUNISM)

*SOCIALISMREDISTRIBUTES WEALTH

GOVERNMENT OWNS AND CONTROLS MEANS OF PRODUCING GOODS