7/28/2019 EOC Unit 6

1/15

Mastering the TEKS for the World

Geography EOC

Unit 6: The Globalization of

Economics

7/28/2019 EOC Unit 6

2/15

Economic Systems

TEKS to be covered in this section

Economics 10 The student understands the distribution,characteristics, and interactions of the economic systemsin the world.

Economics 10 (A) Describe the forces that determine thedistribution of goods and services in free enterprise, socialist, andcommunist economic systems.

Economics 10 (B) Classify where specific countries fall along theeconomic spectrum between free enterprise and communism.

Economics 10 (C) Compare the ways people satisfy their basicneeds through the production of goods and services such assubsistence agriculture versus commercial industries.

Culture 18 (C) Identify examples of cultures that maintaintraditional ways, including traditional economies.

7/28/2019 EOC Unit 6

3/15

Economic Systems

What is economics?

Economics is the study of howindividuals, businesses, andnations make things, buy

things, spend money and savemoney.

Supply and Demand- peoplehave unlimited wants yetsupplies might be limited.

When supply is high anddemand is low, cost is low.When supply is low anddemand is high, cost is high.

7/28/2019 EOC Unit 6

4/15

Economic Systems

What are goods and services?

Goods are those things that

people make

Services are those thingsthat people do for each

other

7/28/2019 EOC Unit 6

5/15

Economic Systems

Types of Economic Systems

Traditional Economy Primarily agricultural

Center around family or tribal unit

People are born into theireconomic situation

Barter system

Subsistence Agriculture Tribe or family only grows what

they need

No sales to market

Cottage Industries People use their free time to

weave cloth, make furniture andcloths

7/28/2019 EOC Unit 6

6/15

Economic Systems

Types of Economic Systems

Free Enterprise

Known as capitalism or freemarket

Based on the laws of supplyand demand

Role of the Government

People have the right toprivate property

People are free to take part inany business they choose

The ability to make profitdrives people

7/28/2019 EOC Unit 6

7/15

Economic Systems

Types of Economic Systems

Communism

Developed in the 1800s based onthe ideas of Karl Marx

In theory, there are no socialclasses

Cooperation replaces competitionand everyones needs are met

In Reality

All important economic decisions

are made by government leaders Government leaders develop

national plans and decide whatspecific goods a factory is going tomake

7/28/2019 EOC Unit 6

8/15

Economic Systems

Types of Economic Systems

Socialism

Important businessesproducing goods are owned

by the government (mines,factories, ect)

Governments typically ownrailroads, airlines, hospitals,banks, utility companies and

other major industries Disagree with communist

ideal that workers lives couldonly improve through violentrevolution

7/28/2019 EOC Unit 6

9/15

Economic Systems

Types of Economic Systems

Mixed Economies

In the real world, no economy

follows one economic system Most countries blend systems

into a mixed economy

7/28/2019 EOC Unit 6

10/15

Economic Development

TEKS to be covered in this section Geography 5 (B) Interpret political, economic, social,

and demographic indicators (gross domestic productper capita, life expectancy, literacy, and infant

mortality) to determine the level of development andstandard of living in nations using the terms HumanDevelopment Index less developed, newlyindustrialized, and more developed.

Economics 11 (A) Understand the connections

between levels of development and economicactivities (primary, secondary, tertiary, andquaternary).

7/28/2019 EOC Unit 6

11/15

Economic Development

Indicators of Development

Human Development Index

Less developed (tribal

civilizations) Newly Industrialized

(countries just starting to turn

into an industrialized

economy)

More Developed (U.S., China,Europe)

7/28/2019 EOC Unit 6

12/15

Economic Development

Demographic Indicators

Life Expectancy

The average number of yearsan individual in the country is

expected to live

Birth and Death Rates

Measure how many peopleare born or die per thousandpeople in a given year

Infant Mortality Rate

Number of infants who dieper every thousand births

7/28/2019 EOC Unit 6

13/15

Economic Development

Economic Indicators

Gross Domestic Product

(GDP) total value of goods

and services produced by anation in a year

Other economic indicators

include average number of

automobiles, telephones,

televisions, or computers

per person

7/28/2019 EOC Unit 6

14/15

Economic Development

Social Indicators

More developed nations

provide more social services

to their citizens Literacy Rate (the

percentage of people who

can read and write) can

indicate the human

development of a country

7/28/2019 EOC Unit 6

15/15

Economic Development

Types of Economic Activities

Primary Involve production of foods and

the extraction of resources

Secondary Add value to raw materials by

producing them or changingtheir form

Tertiary A variety of services performed

by people and businesses Quaternary

Economic activities consistingof those involving informationprocessing and management