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
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.
Subsistence farming is when a farm only grows enough crops and produce for its own survival.
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
What factors affect locations of different types of economic activity?