Mastering the TEKS for the World Geography EOC

Unit 6: The Globalization of Economics

Economic Systems
TEKS to be covered in this section
Economics 10 The student understands the distribution, characteristics, and interactions of the economic systems in the world.
Economics 10 (A) Describe the forces that determine the distribution of goods and services in free enterprise, socialist, and communist economic systems. Economics 10 (B) Classify where specific countries fall along the economic spectrum between free enterprise and communism. Economics 10 (C) Compare the ways people satisfy their basic needs through the production of goods and services such as subsistence agriculture versus commercial industries.

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

Economic Systems
What is economics?
Economics is the study of how individuals, businesses, and nations make things, buy things, spend money and save money. Supply and Demand- people have unlimited wants yet supplies might be limited. When supply is high and demand is low, cost is low. When supply is low and demand is high, cost is high.

Economic Systems
What are goods and services? Goods are those things that people make Services are those things that people do for each other

Economic Systems
Types of Economic Systems
Traditional Economy
Primarily agricultural Center around family or tribal unit People are born into their economic 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 and cloths

Economic Systems
Types of Economic Systems Free Enterprise
Known as capitalism or free market Based on the laws of supply and demand

Role of the Government

People have the right to private property People are free to take part in any business they choose The ability to make profit drives people

Economic Systems
Types of Economic Systems
Communism
Developed in the 1800s based on the ideas of Karl Marx In theory, there are no social classes Cooperation replaces competition and everyones needs are met

In Reality
All important economic decisions are made by government leaders Government leaders develop national plans and decide what specific goods a factory is going to make

Economic Systems
Types of Economic Systems Socialism
Important businesses producing goods are owned by the government (mines, factories, ect) Governments typically own railroads, airlines, hospitals, banks, utility companies and other major industries Disagree with communist ideal that workers lives could only improve through violent revolution

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

Economic Development
TEKS to be covered in this section
Geography 5 (B) Interpret political, economic, social, and demographic indicators (gross domestic product per capita, life expectancy, literacy, and infant mortality) to determine the level of development and standard of living in nations using the terms Human Development Index less developed, newly industrialized, and more developed. Economics 11 (A) Understand the connections between levels of development and economic activities (primary, secondary, tertiary, and quaternary).

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)

Economic Development
Demographic Indicators Life Expectancy
The average number of years an individual in the country is expected to live

Birth and Death Rates

Measure how many people are born or die per thousand people in a given year

Infant Mortality Rate

Number of infants who die per every thousand births

Economic Development
Economic Indicators Gross Domestic Product (GDP) total value of goods and services produced by a nation in a year Other economic indicators include average number of automobiles, telephones, televisions, or computers per person

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

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 changing their form

Tertiary
A variety of services performed by people and businesses

Quaternary
Economic activities consisting of those involving information processing and management