Introduction to Economy
Factors of Production
Ranking Countries: each country falls under 1 of 3 headings: developed, newly industrializing, and developing
- What natural resources do we have available?
- If I say human capital has to do with the knowledge / skill of each individual member of a country, what are some things the government can do to raise that?
- If capital goods are things like industries that create goods to be sold, what do you think could be some examples of Canadian industries (Rim, Ford)
- Have we heard the term entrepreneur before? What do we think it could mean?
Ranking Countries: each country falls under 1 of 3 headings: developed, newly industrializing, and developing
- They are grouped based on similarities (GDP per Capita and social development)
- Social Development: measured by how long people live in each country, what kind of health care they receive, and what education levels they reach
- Economics are based on the service sector, which are well developed (education, health care, banking, transportation etc.)
- Most became developed based on manufacturing, but this is less important to the economy now
- Primary industries are the least important part of the economy (value and providing jobs)
- Citizens have the highest standards of living (some of the poorest people live well compared to the average person in developing countries
- Some cons: while having only 20% of the world’s population, these countries use most of the world’s resources and produce most of the world’s pollution
- Economics are dominated by primary industries, in particular agriculture
- Most new developments are focused on manufacturing
- Service sector of the economy is poorly developed (most people have little money to spend on services like phones, banks, and schools)
- Citizens earn little cash income, as most of their production is for their own use or traded to supply their needs
- Citizens do not pay taxes, so the government can’t provide money for education, health care, or economic development, and have to rely on foreign aid (money/food etc. given by one country to another country
- This process involves a complete change in the economy and lifestyle of the country over many years
- Example countries are Taiwan, South Korea, Hong Kong, and Singapore, which have each gone from the developing stage to the developed stages since WWII