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 sold
Services – 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 trillion
Mexico – $1.0 trillion
Japan – $5.4 trillion
China - $5.8 trillion
Sudan - $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 task
2. Location (geographic – available resources)
3. Location (to appropriate market)
 Primary Employment Sector

• Gathering raw materials – natural

resources taken from the earth
• Example: Mining, Fishing, Farming
Secondary Employment Sector

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

their form
• Example: Iron changed into an automobiles
 Tertiary Employment Sector

• Business or professional services

• Example: teachers, retail salespeople, doctors
Quaternary Employment Sector

• Provide info, research, management, etc.

by highly trained personnel
• Managers, scientists, software designers
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
 Command Economy
• Production of goods and services determined by the government.
• Also called “Planned Economy”
• Example: Communist countries
 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:
India
Mexico
 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
Picture A Picture C

Which
picture best
fits each
economic
level?

Picture B Picture D