Economic Activity. Types of Economic Activities. Primary Economic Activity. Fishing- tuna fishing Forestry Mining/drilling Agriculture (based on land and climate) 50% of less developed countries 15-20% newly industrialized <8% of developed countries
Primary Economic Activity • Fishing- tuna fishing • Forestry • Mining/drilling • Agriculture (based on land and climate) • 50% of less developed countries • 15-20% newly industrialized • <8% of developed countries • Commercial Agriculture: produced to sell • Subsistence Ag.: provide for your family
Primary Economic Activity cont’d… • Subsistence Farming • Grow enough for family or village • Commercial Farming • Use modern techniques • Only small # of workers needed • Found in all countries • Plantations- found in newly industrialized • Who owns most plantations?
Secondary Economic Activity • Manufacturing- Industry • Takes raw material and turns into a finished products • Tuna into Canned Tuna What are some examples of manufacturing in the United States? In what regions? Cities?
Tertiary Economic Activity The Service Industries • Transportation • Sales • Advertising • Government-some • Health Care • Banking • Education- some
Quaternary Eco Activities Collecting, processing and distributing information • government, culture, libraries, scientific research, education, and information technology.
Less Developed Limited modern technology Dependent on developed countries for manufactured goods. GDP per capita: ~$1000 Mostly primary and secondary eco. activities Stages of Economic Activity • Developed Country • Modern Technology • Mostly Tertiary Eco. Activities (Service) • Well developed economy • GDP per Capita: USA $46,000 • Has sustainable development • Outsourced manuf. when costs can be cut.
Zimbabwe- What stage am I? • $600.00 GDP per capita • 66% Agric. • 38% urban • 3.8 Fertility rate
Know these front and backwards!!! • Primary- Agriculture • Secondary- Manufacturing (industry) • Tertiary- Service • Quaternary- data
USA 1.1% Agriculture (primary) • 22.1 % Manufacturing • 76.8% Service (Tertiary) • Can U say “Sustainable development” • Hmmm • Monaco 95% service!!! Mexico(Newly Indust) 13% Agric, 24% Manuf., 63% Service Bangladesh 18% Agric,28% Manuf., 52% Service Zimbabwe(less developed) 66% Agric, 10% manu., 24% Service
What are some examples of raw materials in your community?What kind of finished product can be made from this? Primary
# of people per car Energy consumption Literacy rate Standard of Living(Daily Life)- look at all these things • Life expectancy • Infant mortality rate • GDP per capita
Traditional Economy cottage industry
Human Resources • Workers- a country’s greatest resource! YOU! • Capital Resources • Machines • Money (Investments) • Buildings Compare a contractor with a hammer and nail to one with lumber, a toolset and backhoe. Which one represents the less developed country? Which one represents the developed country?
Supply and Demand • As the price goes up, what happens to the demand? • Real life- • As the price is reduced, what happens to the supply of goods?
Economic Systems answer these questions… What will be produced? How much will be produced? How will it be distributed? What will it cost?
Economic Spectrum Total government control No government
Economic Spectrum No government Strong Government • Command Ec • Communism • Karl Marx • Gov’t regulates all • Central planners • Socialism/ Mixed • Free-Market • Capitalism • based on profit • private ownership • entrepreneurship
Matching: Communism, socialism, capitalism, traditional • Consumers make the decisions • Welfare state • Free doctors visit • CNN, Fox, Comcast, Ixfinity, CBS, ABC, NBC • Clay pots from hand • Profit is motive for doing well • Community farms • Reebok, Nike, Addidas,… • No social classes • Follow parents line of work • 93Q, the Eagle, 104 KRBE, 740 Talk Radio,