CLASSROOM NOTES - GEOGRAPHY 6th GRADE UNIT 4

 Title: The Economy

 Economy: is the system of production, commercialization, and consumption.

 Production: the act or process of producing/ making something.

 Commercialization: the act of distributing goods to a specific place.

 Consumption: the act of taking the goods and applying it’s function.

 Title: Economic Process

 Economic Process: Is any process affecting the production and

development and management of material wealth.

 Title: Economic Process

 Market: A market is any place where the sellers of a particular good or

service can meet with the buyers of that goods and service where there is a
potential for a transaction to take place.

 The buyers must have something they can offer in exchange for there to be a
potential transaction.

 Title: Economic Process

 DEMAND: the ability and desire to purchase goods and services; “Demand is
high for the Nintendo 3DS because it’s selling like pancakes."

 The demand exceeded the supply.

 Supply: Providing enough products/goods in the market to ease demand by

the public. “ there will be enough Nintendo 3DS’s for everyone by Christmas.”

 Title: Economic Process Ex

 Give me 3 examples of Economic Process. 3 different Production,

commercialization, consumption.

 Title: Economic Micro/Macro

 MicroEconomics - Microeconomics is the study of the small part or

component of the whole economy that we are analyzing.

 In Microeconomics we study of the price of the particular product or particular

factor of the production.
 Ex. For example we may be studying an individual firm or in any particular
industry.

 Title: Economic Micro/Macro

 MicroEconomics – Examples

 Household behaviors

 Firm process

 Product prices

 Title: Economic Micro/Macro

 MacroEconomics - Macro economics is the study of behavior of the

economy as a whole. It examines the overall level of nations output,
employment, price, and foreign trade.

 Macroeconomics is concerned with the whole amount and average of entire

economy.

 Ex: MacroEconomics studies how high or low the unemployment will be in a

nation.

 Title: Economic Micro/Macro

 MacroEconomics – Examples

 Inflation: a general and progressive increase in prices; "in inflation

everything gets more valuable except money.”

 Unemployment

 Economic Growth

 Title: Taxes

 Income: The amount of money or its equivalent received during a period of

time in exchange for labor or services, from the sale of goods or property, or
as profit from financial investments.

 Tax: A contribution for the support of a government required of persons.

 Title: Taxes
 Income: The amount of money or its equivalent received during a period of
time in exchange for labor or services, from the sale of goods or property, or
as profit from financial investments.

 Tax: A contribution for the support of a government required of persons.

 MEXICO INCOME TAX: 0-28%

 USA INCOME TAX: 15-35%

 CHINA INCOME TAX: 5-45%

 Title: Taxes

 Sales Tax: A tax made on purchasing various products.

 Personal Income Tax: A personal or individual income tax is levied on the

total income of the individual

 Corporate Tax: Corporate tax refers to a direct tax on the profits made by
companies or associations.

 Title: International Commerce

 International: concerning or belonging to all or at least two or more nations.

A connection between two nations.

 Commerce: transactions (sales and purchases) having the objective of

supplying commodities (goods and services).

 Title: International Commerce

 ICC (International Chamber of Commerce): Is the voice of world business

championing the global economy as a force for economic growth, job creation
and prosperity.

 ICC is the largest, most representative business organization in the world. Its
hundreds of thousands of member companies in over 130 countries have
interests spanning every sector of private enterprise.

 Title: International Commerce

 International Trade/ Global Trade: International trade is exchange of

capital, goods, and services across international borders or territories.

 Globalization: Describes the process by which regional economies,

societies, and cultures have become integrated through a global network of
political ideas through communication, transportation, and trade.
 Title: International Commerce

 - Human societies across the globe have established progressively

closer contacts over many centuries, but recently the pace has dramatically
increased. Jet airplanes, cheap telephone service, email, computers, huge
oceangoing vessels, instant capital flows, all these have made the world more
interdependent than ever.

 - Multinational corporations manufacture products in many countries

and sell to consumers around the world. Money, technology and raw
materials move ever more swiftly across national borders.

 Ref. http://www.globalpolicy.org/

 Title: International Commerce

 IMPORTATION: The commercial activity of buying and bringing in goods

from a foreign country.

 Example: United States buys/imports Salmon(Fish) from Chile.

Example: Mexico imports champagne from France.

 EXPORTATION: The Commercial activity of sending national goods to

foreign countries.

 Example: Mexico sends/exports Tequila to Japan.

Example: United States sends computers to Africa.

 Title: Production Chain

 Production Chain: A production chain is the steps that need to be taken

in order to transform raw materials into goods which can then be used by
consumers such as you and me.

 For instance, a primary product might be an apple and some wheat, and the
chain of production will turn this into an apple pie for you to enjoy.

 Title: Production Chain

 A typical production chain would look something like this:

 Primary producers are always the first stage in any chain, and the part they
play is to produce the raw materials from which the final product will then be
created.
 The secondary stage of production is when the product itself takes shape in
the hands of manufacturing companies. These companies bring together
products and other raw materials to create the final product.

 The last and final stage in each production chain is the actual selling of the
product to the consumer. A retailer such as a supermarket will buy a large
amount of the final product from the supplier, to then sell on to you, the
consumer.