Urban GeographyCh. 4, Sec. 4

Exurb Exurb

Suburbs

Central

City Exurb

Exurb

Exurb

Economic geographyCh. 4, Sec. 5

Economy – production and exchange of goods and services among a group of people

Economic system – the way people produce and exchange goods and services

Types of Economic systems

1. Traditional economy – goods and services are traded w/o using money (bartering)

2. Command economy – production is determined by the central gov’t (planned economy)

3. Market economy – production determined by the demand from customers (demand economy/ capitalism)

4. Mixed economy – combination of command and market

Economics of Natural Resources Natural resources – materials on or in the

earth that have economic value◦ Not evenly distributed around the earth

3 basic types1. Renewable – can be replaced (trees)2. Non – renewable – cannot be replaced (metals,

fossil fuels)3. Inexhaustible energy sources – unlimited

amount Sunlight, geothermal heat, and wind

Infrastructure – basic support systems needed to keep an economy going◦ Power◦ Communication◦ Transportation◦ Water◦ Sanitation◦ Education system

Measuring Economic Development Per Capita Income – average amount of

money earned by each person in a political unit

Gross National Product (GNP) – total value of all goods and services produces by a country over a year◦ Goods do not have to be produced in that country

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

Developed vs. Developing CountriesIn terms of the distribution of wealth, there are two categories of countries on earth: developed and developing. Developed countries are those that have made major social, political, and economic progress. Their economies are based on service and manufacturing industries. They have a low population growth rate, a high per capita gross domestic product, good educational opportunities, and easily available health resources. Developing countries generally have economies based on agriculture. They have a rapid population growth rate and limited resources. Many of their residents lack the basic necessities of life. About three fourths of the world’s people live in developing countries

Cottage Industry Home-based industries that produce on a small scale

Big businesses that manufacture in mass quantity

Commercial Industry

4 levels of Economic Activity

Primary ActivitiesGathering of raw materialsExample: drilling for oil

Secondary ActivitiesAdding value to materialsExample: car manufacturing

Tertiary ActivitiesBusiness or professional servicesExample: teachers, doctorsQuaternary ActivitiesInformation, management, and research services by highly-trained persons