2. Urban areas develop around a central city Suburbs = built up area around central city Exurbs = cities or towns with space btw. them and the central city All 3 = Metropolitan area Megalopolis = more than one metropolitan area that has grown together
3. Exurb Exurb Suburbs Central City Exurb Exurb Exurb
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5. City locations Cities grew for easy transportation access Rivers, coast line, railroads Specialize in what is available around them Ex: Pittsburgh – close to iron ore and coal sources = produce steel
6. Land Use Residential Industrial – manufacturing goods Commercial – buying and selling of goods Central business district – core of the city that focuses on commercial activities
7. Functions of a city Business Entertainment Education Cultural activities Religious and social services
9. Economy – production and exchange of goods and services among a group of people Economic system – the way people produce and exchange goods and services
10. Types of Economic systems Traditional economy – goods and services are traded w/o using money (bartering) Command economy – production is determined by the central gov’t (planned economy) Market economy – production determined by the demand from customers (demand economy/ capitalism) Mixed economy – combination of command and market
11. Economics of Natural Resources Natural resources – materials on or in the earth that have economic value Not evenly distributed around the earth 3 basic types Renewable – can be replaced (trees) Non – renewable – cannot be replaced (metals, fossil fuels) Inexhaustible energy sources – unlimited amount Sunlight, geothermal heat, and wind
12. Infrastructure – basic support systems needed to keep an economy going Power Communication Transportation Water Sanitation Education system
13. Measuring Economic Development Per Capita Income – average amount of money earned by each person in a political unit Gross National Product (GNP) – total value of all goods and services produces by a country over a year Goods do not have to be produced in that country Gross Domestic Product (GDP) – total value of all goods and services produced within a country over a year
14. Developed vs. Developing Countries In terms of the distribution of wealth, there are two categories of countries on earth: developed and developing. Developed countries are those that have made major social, political, and economic progress. Their economies are based on service and manufacturing industries. They have a low population growth rate, a high per capita gross domestic product, good educational opportunities, and easily available health resources. Developing countries generally have economies based on agriculture. They have a rapid population growth rate and limited resources. Many of their residents lack the basic necessities of life. About three fourths of the world’s people live in developing countries
15. Cottage Industry Home-based industries that produce on a small scale Big businesses that manufacture in mass quantity Commercial Industry
16. 4 levels of Economic Activity Primary Activities Gathering of raw materials Example: drilling for oil Secondary Activities Adding value to materials Example: car manufacturing Tertiary Activities Business or professional services Example: teachers, doctors Quaternary Activities Information, management, and research services by highly-trained persons
