Resource Manager

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Chapter 2
Resource Manager
Ladybirds!
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Chapter 2
Section I Economic Systems
Ladybirds!
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Objectives

• Describe the characteristics of the traditional,
  command and market economies.
• Explain the advantages and disadvantages of the
  traditional, command and market economies.

Cardinals!
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Economic Systems
The way of determining how to use resources to
satisfy peoples needs and wants.
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Economic Systems

• Traditional
• Command
• Market
• Mixed

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Economic Activities

• Primary
• Secondary
• Tertiary
• Advance

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Economic Activities
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Economic Activities
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Primary Activities

• Hunters and gatherers
• survival through hunting animals
• Small groups
• Migrate with the herds and weather
• Agriculture the deliberate modification of
  Earths surface through cultivation of plants and
  rearing of animals to obtain sustenance and
  economical gain
• Domestication of plants and animals
• Cultivation
• vegetative planting cutting stems and dividing
  roots
• seed agriculture using seeds to plant crops
• Subsistence consumption (less developed)
• Commercial profit (developed countries)
• Sustaining productivity crop rotation and
  fertilizers
• Agribusiness dairy, grain, ranching,
  Mediterranean

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Primary Activities
Factors of Production
Tribes organized into farmers, hunters and other
task
Move with the seasons and/or herds
Land
Labor
Capital
Entrepreneur
Technology
Trade goods and maybe services
Weapons, fire, cooking pots, shelters
Agricultural revolution
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Secondary Activities Manufacturing

• Industrial revolution
• Energy wood to coal
• Engineering develop machines to complete task
• Transportation brought bulky materials to
  factories
• Manufacturing the transformation of raw
  materials into finished goods for sale. This
  effort includes all intermediate processes
  required for the production and integration of a
  product's components
• Distribution
• Situation factors transporting materials to and
  from factories.
• Site factors characteristics of a location,
  land, labor and capital

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Secondary Activities - Distribution

• Situation Factor
• locate near resource
• bulk-reducing industries product weighs less
  after manufacturing (steel)
• locate near market
• bulk-gaining product weighs more after
  production (soda and automobile).
• Perishable products milk, bakers and
  newspapers
• break-of-bulk goods transfer transportation
  modes (sea to train or train to truck)
• Site factors
• labor-intensive industries the need of people
  to produce the product clothing
• capital borrowing of money technology

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Secondary Activities
Outsourcing, productivity, division of labor,
documented or undocumented specialization,
education/training, factory system
Site location, land labor
Factors of Production
Situationbulk gaining, reducing, perishability
Land
Labor
Machines, mass production
Investors, sales
Capital
Entrepreneur
Technology
Henry Ford, Eli Whitney, Samuel Morse
Industrial revolution
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Tertiary Activities - Services

• Consumer services
• retail services provides goods sales to
  consumers
• ¼ of all jobs in the U.S.
• sales, restaurants, shops
• personal service provide services for the
  well-being and personal improvement of individual
  consumer
• 1/5 of all jobs in the U.S.
• healthcare, education, social workers,
  recreation, hotel, churches, repair shops, hair
  designers, dry cleaners

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Tertiary Activities - Services

• Business services facilitate other business
• producer primarily to help people conduct other
  business agriculture and manufacturing
• 1/6 of all U.S. jobs
• banks, real estate, insurance companies,
  primarily law, engineering and management
• transportation and similar service business
  that diffuse and distribute services
• 7 of U.S. jobs
• transportation, broadcasting, publishing

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Tertiary Activities
Outsourcing, Education, services
Factors of Production
Site location
Land
Labor
Electronics
Investors
Capital
Technology
Entrepreneur
Bill Gates, Doctors, Scientist
Information revolution Medical revolution
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Economic Systems

• Traditional
• Command
• Market
• Mixed

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Traditional Economy
The allocation of scarce resources, and nearly
all other economic practices, stems from rituals,
habits, customs, community leader(s)
The individual role is designed by the village
elders or ancestors
Factors of Production
Advantages
Disadvantages

• Discourages new ideas and methods
• Stalls economic growth
• Limits creative
• Lowers standards of living very little wants

• Land family property
• Labor family, friends or assigned by community
  leader(s)
• Capital more survival, little to no surplus
• Technology limited to customs and traditions,
  changing with the times
• Entrepreneurs discouraged

• What based on village or community needs
• How generational, you are born into your
  occupation, increased productivity
• For Whom the community, very little for
  individual wants

Economic Activity Primary
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Traditional Economy

• Societies Inuit or Amish
• Countries
• Developing countries
• Sub-Sahara African tribes

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Command Economy
The allocation of resources, factors or
production, economic decisions and nearly all
other economic practices are controlled by a
central authority (dictator)
The individual role is controlled or determined
by the dictator
Factors of Production
Advantages
Disadvantages

• Discourages new ideas and methods
• Controls economic growth
• Limits creative
• Lowers standards of living very little wants
• Limited desire to work hard

• Land dictator
• Labor can change your occupation over night
• Capital goes to the government to support the
  country
• Technology usually limited
• Entrepreneurs usually controlled by the
  dictator

• Changes quickly
• Eliminates social class, except government
  officials
• What Government needs
• How Dictator
• For Whom Government

Economic Activity Secondary / Tertiary
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Command Economy

• Current
• North Korea
• Cuba
• Historical
• Soviet Union
• China

Chapter 2
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Market Economy
Relies on the forces of supply and demand
People and firms act in their own best interest
to answer the WHAT, HOW and FOR WHOM questions
Advantages

• adjusts w/ change over time big cars vs small
  cars
• What individual freedom to buy or sell
• How best way to make money
• For Whom your decision
• Limited government involvement
• Variety of goods and services
• High degree of consumer satisfaction

Factors of Production
Disadvantages

• Land Do what you want on your land
• Labor economic freedom work where you want
  start your business
• Capital Use your money to buy what you need
• Technology Economic Freedom
• Entrepreneurs economic freedom

• Rewards on production
• Workers and businesses face uncertainty as a
  result of competition and change
• Limited public goods defense, education and
  healthcare
• Vulnerable to market failures

Economic Activity Tertiary / Secondary
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Market Economy

• Examples
• The United States
• Canada
• Britain
• Japan
• Germany
• France

Chapter 2
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Basis of a Free Market
Capitalism
Free Enterprise

• Private citizens own the factors of production

• Creates an competition

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Basis of a Free Market

• Economic freedom consumers within a market
  economy have the freedom to make their own
  economic decisions wants vs. needs employment
  
• Economic Efficiency
• Resources are scarce
• Factors of production must be used wisely
• Wasted goods produced and fewer services offered
  less wants and needs satisfied
• Economic equality
• Equal pay for equal work
• Discrimination age, sex, race, religion, or
  disability
• EOE equal opportunity employer
• Lemon Law and warranty

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Free Market in Motion

• Capitalism / free enterprise people are free to
  use their life savings for a business venture

Profit
Profit Motive
Competition

• The extent to which persons or organizations are
  better off at the end of a period then they were
  at the beginning

• The driving force that encourages and
  organizations to improve their material well
  being

• Struggles among sellers to attract consumers

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Primary Activities
Factors of Production

• __________________________________________________
  _________________

• _____________
• _____________
• _____________

Land
Labor
Capital
Entrepreneur
Technology
6. _________________
7. _________________
5. _________________
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Secondary Activities
8. _______________________________________________
_____________________________
9. Site __________________
Factors of Production
10. Situation ________________________________
Land
Labor
12. _________________
11. ______________
Capital
Entrepreneur
Technology
14. _____________________
13. __________________
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Tertiary Activities
15. ___________________
Factors of Production
16. Site ________________
Land
Labor
17. _____________
18. _______________
Capital
Technology
Entrepreneur
20. __________________
19. _________________
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Command Economy

• A central authority makes most of the WHAT, HOW
  and FOR WHOM decisions.
• Governments makes all economic decisions
• Government controls all factors of production

Chapter 2
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Learning Objectives

• (GLE) Concept A. Uses of geographic research
• Use and evaluate geographic research sources
  (e.g., maps, satellite images, globes, charts,
  graphs and databases) to interpret Earths
  physical and human systems
• Construct maps Geography
• (GLE) Concept C. Understanding the concept of
  location
• Communicate locations of places by creating maps
  and by describing their absolute locations and
  relative locations
• (GLE) Concept H. Using geography to interpret
  events of the past, explain the present and plan
  for the future
• Use geography to interpret the past, explain the
  present and plan for the future

Chapter 1
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Learning Objectives

• (GLE) Concept E. Knowledge to create various
  social-studies graphics
• Create maps, charts, diagrams, graphs, timelines
  and political cartoons to assist in analyzing and
  visualizing concepts in social studies
• (Book) Identify the two main branches of
  geography
• (Book) Explain how we use geography
• (Book) Describe some ways we can organize our
  World and the study of geography

Module 1
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Quiz

• (6 pts) List the three (3) economic activities?
  (in order from earliest to latest)
• (1 pt) Name the revolution that occurred during
  the the first economic activity.
• (4pts) Name the two (2) distribution factors
  that are considered during the second economic
  activity.
• (9 pts) Briefly explain the each of the economic
  activities.

Chapter 2