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Transcript

Get ready to explore economics around the world!

Module 4 Lesson 2: World Economics

You will be able to:

  • Explain how production influences a society's economy.
  • Describe how people participate in the economy.
  • Consider how governments can act to affect the economy.
  • Compare the economies and economic standards of different nations.

Let's start!

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This includes all of the wealth and resources of a region!

An economy is the system that controls the way money is earned and used in a state or country.

In Taiwan, night markets selling a vareity of foods such as dumplings, sausages, and squid are very popular!Producers and consumers are key to a thriving economy! Within these markets, the vendors selling food would be considered producers, as they are making and selling goods. Hungry shoppers would be considered consumers, as they are buying and eating goods.

Economies are strong when both production and consumption are high — in other words, when businesses are making a lot of resources and consumers are buying those resources. If production is high, people have jobs — which gives them money to spend.

How do people like you and I participate in the economy?Click the image to find out.

One of the most important ways people participate in the economy is by working! We can divide work into 4 categories of industry.

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Extension: What do you think is going on in this photograph?
In the primary level of industry natural resources are taken from the Earth, such as jewels, oil, crops, timber, etc. Workers at this level may be farmers, miners, lumberjacks, and fishing boat captains.

Primary Level

In the secondary level of industry people make things out of natural resources. Anyone who works in a factory is part of the secondary level of industry, but so are bakers, butchers, and craftspeople. We call this manufacturing!

Secondary Level

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The third level of industry is our service sector! These are people who work directly with customers or provide a service to others. This would include positions such as cashiers, nurses, bank tellers, hair stylists, waiters, etc.

Tertiary (Third) Level

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People in the fourth level of industry create, share, and store information. They do research, give advice, report on events, and keep records. Workers in this category include teachers, librarians, accountants, scientists, and reporters.

Quaternary (Fourth) Level

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The levels of industry help us tell the difference between a developed and developing country!

The economies of developed countries rely on advanced technologies. All levels of industry are active, and people have access to a variety of goods and services. People here tend to live longer lives and have higher literacy levels. They are common in North America, Europe, and East Asia. In these regions you can typically find chain restaurants and stores.

Developed Country

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The economies of developing countries rely mostly on the primary level of industry. The economies of developing countries often depend on farmers and craftspeople producing small amounts of resources. They are common in Southeast Asia, Africa, and South America.

Developing Country