Economic Systems
A system in which people produce, sell, and buy things.
What is an economy?
The production of goods and services.
What is economic activity?
The materials on or in the earth that have economic value.
What are natural resources?
The value of products that a country produces per person.
A country's wealth and infrastructure.
What is capital?
The government owns most parts of the economy and decides what will be produced and sold.
What is command economy?
Taking raw materials from the soil and water, including mining, farming, fishing, and forestry.
What is the primary sector of economic activity?
Air, water, wood, oil, wind energy, natural gas, iron, and coal.
What are examples of natural resources?
The total value of the goods and services that a country produces.
What is Gross Domestic Product (GDP)?
What is entrepreneurship?
Goods and services are traded without exchanging money.
What is traditional economy?
Involving the use of raw materials to manufacture products such as furniture and cars.
What is the secondary sector of economic activity?
Can be replaced through natural processes.
What are renewable resources?
What indicators measure the strength of a country's economy?
GDP, income, literacy rate, and life expectancy.
The size and education level of the workforce.
What is labor?
Privately owned businesses create goods that people buy in markets. Also called a market economy or capitalism.
What is a free enterprise economy?
Includes services like banking and health care.
What is the tertiary sector?
Cannot be replaced once they have been removed from the ground.
What are non-renewable resources?
The two categories countries fall under.
What is more developed countries (MDCs) and less developed countries (LDCs).
Provides all the natural resources used to produce goods and services.
What is land?
A combination of command and free enterprise economies.
What is a mixed economy?
Geographers divide this into different sectors.
What is economic activity?
Directly engaged in the extraction and harvesting of natural resources.
What is the primary sector of economic activity?
A country whose economy is mostly from the primary or secondary sectors.
What is a less developed country (LDC)?
A country is more likely to have a strong economy if they have...
What are all four factors of production?