• In the book, three types of economy were discussed: market, command and traditional.  Use your notes from class to see how that would connect to government.   
      
     

    There are four stages of economic development:


    First-level activities: In the first level, people use land and resources directly to make products.  They may hunt, cut wood, mine, fish.  They may farm or herd animals.  About 1/2 the world works in first-level activities. 

     walnut tree      Raw materials


    Second-level activities: When a product is processed, it is changed from a raw material into a finished project.  That process is called manufacturing. 

    Manufacturing    Soles    Carve

    Third-level activities: In the third stage, a person delivers or distributes the products to people who want them.  People who distribute products do not make them.  They produce a service; there are many services needed in an industrial nation.

    Shop new    shop 2

    Fourth-level activities: At this level, research is conducted and information is sold. 

    Speaking    Computer    Anniversary Media

    Because of the Industrial Revolution, countries were separated into two groups: those with many industries and those with few.  Countries with many industries are called developed nations.  Countries with few industries are called developing nations. 


    Examples:


    Australia Afghanistan


    Per capita GDP (U.S.$): $30,700

    Life expectancy at birth: 80.4 years

    Literacy rate: 100%

    Physicians per 10,000 people: 25

    Australia


    Per capita GDP (U.S.$): $800

    Life expectancy at birth: 49.2 years

    Literacy rate: 36%

    Physicians per 10,000 people: 19 

     Afghanistan