1) What is an “economy”?  The systems and process involved in the ____________________________, _______________________, ______________________, and _____________________ of goods and services. 

2) Write the definitions for each part of an economy in the boxes provided 

3) Draw pictures in each box to show how one agricultural product is made, moved, sold, and bought. Choose a farm/ranch product, then draw pictures to show it being made, moved, bought, and sold. 

4) Define GDP (Gross Domestic Product)

Agriculture

Agriculture is the most basic form of economic activity. This involves taking products from the earth for human use. DEVELOPING economies will have MORE agricultural activities because it doesn't require a lot of skill/education for people or investment (money) from the government. In the United States, we only have about 2% of our population involved in agricultural activities.

5) Why do developing economies have more agriculture? 

6) List at least three examples of agriculture

Industry

Industry requires more skills and money than agriculture. This part of the economy takes raw products (food, wood, minerals) from agricultural jobs and finishes them into manufactured goods. DEVELOPED economies have MORE industry because it requires more money and investment from the government. About 15-20% of people in the United States are involved in industry.

7) How does industry relate to agriculture?

8) List at least three examples of industry

Service

The last part of the economy is service, which involves people selling the items made by the agricultural and industrial parts of the economy. Service is also called skilled labor because people also are selling their own skills - think doctors, firemen, and chefs. DEVELOPED economies with a high GDP spend more money on education, so there are MORE educated people to work in services.  Most people in the United States work in the service economy - almost 80%!

9) Why do developed economies have the most services?

10) List at least three examples of service jobs

GDP - Gross Domestic Product

Countries are ranked by their GDP, or how much money the country makes in a year. A country with a lot of money is called DEVELOPED, while a country with a low amount of money is called DEVELOPING. 

Usually, developed and developing countries follow these rules: