GEOG 216 Lecture Notes - Consumer Sovereignty, Informal Sector, Free Market

7 views3 pages
Published on 23 Nov 2012
Department
Course
How Economies are Organized
- How decisions are made in terms of production + consumption
- Who is it that decides what will be produced, how distrib, where, why?
Types of economic sectors
- Primary: ex, fishing, forestry, mining, agriculture
- Secondary: ex, process, transform, fabricate, or assemble raw materials to s/other product
- Tertiary: sale + exchange of g/s, (ex, retail, professional, education, health)
- In indus soc, most workers earn $ in this sector
- Quaternary: handling + processing of knowledge + information (ex, R & D)
Patterns of production
- Formal sector
- Recog by the state (subject to law, regulation, taxation)
Taxes (gov revenues) can be used for public services + can contrib to econ growth
- Small businesses to MNCs
- Informal sector
- S/ppl can at least get s/cash
- By-pass state + gov doesn’t have revenue to establish infrastructure
- Tend to be small +/fam operated
- Subsistence farmers to urban sellers
- Dualism
- Tend to use term to describe poor nats
- Exists when extremes of wealth + poverty live side by side in an econ
Ex: foreign/domestic elites alongside mass of poorer ppl
- Public goods
- G/s provide communally
Ex: national defense, roads, parks, education, health care
Tasks of an economic society
- Organize production of enough g/s to assure its survival
- Arrange distrib of production so more production can take place
- Answer: what, how, where, to whom (benefits), by whom (decides)?
Modes of production and distribution
- Systems w/distinct relationships among factors of production (ex: land, labour, capital)
- Land: natural resources / Labour: workforce, un/skilled / Capital: machinery, investment
(Capitalist) free-market economy
- Location of decision-making
- Decentralized producer + consumer sovereignty
- Ownership + control of means of production
- Individ entrepreneurs (private enterprises) control productive processes + market the surplus
- S/times states involved in providing transportation + control certain industries to make sure
products are provided to population (theoretically all controlled by entrepreneurs)
- Private property rights
Unlock document

This preview shows page 1 of the document.
Unlock all 3 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Notes+

Unlimited access to class notes and textbook notes.

YearlyBest Value
75% OFF
$8 USD/m
Monthly
$30 USD/m
You will be charged $96 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.