W. Geo. Ch. 4, Sec. 5: Economic Geography

What are basic characteristics of developed countries?

1) high per capita income (average amount of money earned by each person) 2) varied economy, especially with quaternary activites such as computer software development Nations with highly developed economies are: Western European nations, Japan, Canada, and the United States

What are some basic characteristics of developing countries?

1) low GDP 2) limited development on all levels of economic activities 3) lack an industrial base 4) struggle to provide the residents with items to meet their basic needs

What are the 4 Basic types of economic systems?

1. Traditional Economy 2. Command Economy 3. Market Economy 4. Mixed Economy

What types of systems make up a country's infrastructure?

1. power, 2. communications (incl. internet & satellite com) 3. *transportation (patterns of roads, highways, ports and airports; areas not accessible remain undeveloped.) 4. water, 5. sanitation, 6. educational systems (schools) 7. available technology & educated workers to run it

Define and give examples of Primary Activities (Level of Economic Activity).

Definition: PRIMARY activities involve gathering raw materials such as timber for immediate use or to use in the making of a final product. Example: cut down trees to make paper

Define and give examples of Secondary Activities (level of Economic Activity).

Definition: Secondary activities involve adding value to material by changing their form. Example: Manufacturing automobiles

Define and give examples of Tertiary Activities (level of Economic activity).

Definition: Tertiary activities involve providing business or professional servisces. Examples: Teachers, tutors, doctors, salespeople

How are GDP and GNP different?

GNP (Gross national product) is the total value of all goods and services produced BY a country over a year or some other specified time. GNP may reflect the value of goods or services produced in 1 country by a company based in another country (example: althletic shoes produced in Thailand by an an American company). The value of those shoes made in Thailand would be counted as a US production. GDP is used to adjust for things like this. GDP (Gross domestic product) is the total value of all goods and services produced WITHIN a country in a given period of time.

What are the defining characteristics of the TRADITIONAL economy?

Goods and services are traded without exhanging money. Also called "barter".

What are some inexhaustible energy sources?

Inexhaustible energy sources are used for producing power and are the result of solar or planetary processes. They are unlimited in quantity. Examples: sunlight, geothermal heat, winds, and tides

What are the defining characteristics of the MARKET economy?

Production of goods and services is DETERMINED BY THE DEMAND from consumers. Also called a demand economy or capitalism.

Define and give examples of Quaternary Activities.

Quaternary Activities provide information, management, and research services by highly trained persons. Example:

How are renewable and non-renewable resources different?

RENEWABLE resources can be replaced through natural processes. Examples include trees and seafood. NON-RENEWABLE resources cannot be replaced once they have been removed from the ground. Examples include: 1. metals such as gold, silver, and iron; 2. non-metals such as gemstones, limestone or sulfur 3. fossil fuels (petroleum, natural gas, and coal). These are the basis of energy production.

What are the defining characteristics of the COMMAND economy?

The production of goods and services is determined by a central government which usually owns the means of production. Production does NOT necessarily reflect the consumer demand. Also calld a planned economy.

What are the defining characteristics of the MIXED economy?

a combination of command and market economies; provides goods and services so that EVERYONE will benefit.

Four Levels of Economic Activity

describes how materials are gathered and processed into goods or how services are delivered to consumers All businesses (small or large) operate at 1 of the 4 economic levels: primary activities, Secondary activities, Tertiary Activities, Quaternary Activities. The more developed an economy is, the greater the number and variety of activities you will find.

What are natural resources?

materials on or in the earth such as trees, fish, or coal, that have economic value. Materials from the earth become resources only when the society has the technology and ability to transform those resources into goods. (Iron ore is useful only after people have the technology to produce steel from it. Natural resources are abundant but are not distributed equally around the world. Natural resources are a major part of world trade.

What is infrastructure?

the basic support systems needed to keep an economy going, including power, communications,transportation, water, sanitation, and edcuation systems.

What is an economic system?

the way people produce and exchange goods and services