Economic Systems

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Economic Systems

  1. 1. Economic systems
  2. 2. What is an ecosystem?
  3. 3. What is an ecosystem? An ecosystem describes how the factors below interact with each other. An economic system is the process of production, distribution and consumption. Input – what goes in Outputs – what goes out Processes – what goes on
  4. 4. Different types of economic systems: A closed system – subsistence farming Input – labour, seed, animals, manure, soil, rain & sunlight. Outputs – food, seed, manure & food energy back into the ecosystem as inputs. Processes – planting, weeding, harvesting & tending stock.
  5. 5. What is subsistence farming? <ul><li>Subsistence farming is when a farm only grows enough crops and produce for its own survival. </li></ul>
  6. 6. An open system – manufacturing industry Inputs – what has to be paid for, raw materials, labour supply, energy/power, site, finance and machinery Outputs – The sale (leading to profit or loss), finished products & waste products. Income from sales used as reinvestments Processes – Processing, packaging and assembly, distribution
  7. 7. What factors affect locations of different types of economic activity?
  8. 8. Factors affecting location: <ul><li>The type of economic activity – primary, secondary, tertiary. </li></ul><ul><li>The cost of the location to rent/buy </li></ul><ul><li>The cost of labour </li></ul><ul><li>Power and water supplies </li></ul><ul><li>And the disposal of waste materials. </li></ul>
  9. 9. What is Primary, Secondary and Tertiary?
  10. 10. <ul><li>Primary – this is when they extract natural resources directly from the ground. </li></ul><ul><li>e.g. coal mining, oil drilling, farming, fishing and forestry. </li></ul>
  11. 11. <ul><li>Secondary –The manufacturing industry, this is when they turn natural raw materials into products. </li></ul><ul><li>For example steel production from an iron ore, wood products from timber and food products from farmed crops. </li></ul>
  12. 12. <ul><li>Tertiary -tertiary is the services industry when manufactured goods are sold or a service is provided. </li></ul><ul><li>For example Doctors, teachers, shop assistants and entertainers all provide a service. </li></ul>
  13. 13. <ul><li>Quaternary- there is also another industry called the quaternary industry. </li></ul><ul><li>For example, HI tech industries, training and health. </li></ul>

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