Economic Geography

Economic Systems

• Traditional Economy (barter) – Goods and Services are traded without exchanging money

• Command Economy – Production of goods and services is determined by a central government (communism, socialism)

• Market Economy – Production of goods and services is determined by the demand from consumers (demand, capitalism)

• Mixed Economy – A combination of command and market economies to provide goods and services so that all people will benefit

The Economic Scale

Market Mixed Command

Levels of Economic Activities

Levels of Economic Activities

• Primary – Gathering and selling raw materials (selling trees)

Levels of Economic Activities

• Secondary – Adding value to raw materials by changing (manufacturing) their form (lumber, paper, furniture)

Levels of Economic Activities

• Tertiary – Selling services (driving the lumber from the mill to the customer)

Levels of Economic Activities

• Quaternary – Provide information management, and research services by highly trained persons

Measuring Economic Development

• Per capita income – The average amount of money earned by each person in a political unit

• Gross National Product – The total value of goods and services produced by a country in a given time

• Gross Domestic Product – The total value of all goods and services produced WITHIN a country in a given time.