ECONOMIC GEOGRAPHY – THE BASICSWorld Regional Studies

Economic Geography Today, we will be examining economic

geography by filling out an organizer Use the PowerPoint to help with what the

concept means Then identify examples for each concept

What is an economic system? Economic System: the organized way

people produce and exchange goods

Types of Economic Systems Traditional Economy: Goods and services

are traded without exchanging money…also called barter(trade) Goods are produced based on ritual and

custom and what a society needs Less developed and agricultural based Examples?

Types of Economic Systems Command Economy: Production of goods and

services is determined by a central government, which usually owns means of production (land, factories, etc.) Production does not necessarily reflect

consumer demand (what people want) Also called COMMUNISM!, SOCIALISM,

MARXISM and a planned economy Examples?

Types of Economic Systems Market Economy: Production of goods

and services is determined by the demand from the consumers Also called capitalism,free market

economy, or Laissez-faire economics Any true market economies?

Types of Economic Systems Mixed Economy: Combination of

command and market economies Has both privately owned

property/businesses and government control

Examples?

Levels of Economic Activity Primary - gathering raw materials

Examples? Secondary - change the materials to

add value Examples?

Tertiary - provide professional services to sell/use materials Examples?

Natural Resources Materials on or in the earth that have

economic value Examples?

What is infrastructure? Basic support systems needed to keep

an economy going Includes transportation, power systems,

communication systems, etc. Examples? (Be specific)

Types of Natural Resources Renewable - resources that can be replaced

through the earths natural processes Examples?

Non-renewable - Resources that cannot be replaced once they have been removed from the ground Examples?

Inexhaustible energy sources – primarily energy resources which never run out Examples?

Economic Comparisons Per capita income – average amount of

money earned by each person in a political unit

Gross National Product - total value of goods and services produced by a country over a year

Gross Domestic Product – total value of goods and services produced within a country over a year

How are GDP and GNP different?

Economic Classifications Developing country – poor

infrastructure, high crime, poverty, low standards of living, low GDP and income, lack of basics and technology, unstable Examples?

Developed country – good infrastructure, higher standards of living, high GDP, good technology, stable Examples?