Geography Homework Unit 2

1. Define the three stages of economic activity. Give examples from your own country?

Production: the production of bananas and coffee.

Distribution: the exportation to Europe and USA of several of our products such as petroleum.

Consumption: the consumption of gas for our cars.


2. What is meant by a subsistence enonomy ? Are there still people in the word using this system?

Is an economy in which the people barely meet their everyday needs, yes there's still people like some farmers here in Ecuador that only consume what they produce.


3. How was money created ?

The first paper money was created in China.


4. Define Barter and Trade.

Barter: exchange of products for other products and services

Trade: the process of buying or exchanging products and services.

5. What is an economic system ?

An organized way in which a state or nation allocates its resources and apportions goods and services in the national community.

6. What is capitalism ? Check out the cartoon and the pyramid. Do you agree with it ? What is your opinion ?

Social system based on the principle of individual rights. The term capitalism is used here in the broader philosophical political sense, and free-market.
I do agree with that picture. In my opinion capitalism is hypocrital economic system, in which the employee is the one that makes all the hard work, but is the owner who recoves all the money from that employee.