LECTURE 3
Economic Man
Economic men are those Homo-Sapiens who are never satisfied with their present standard of living. In order to achieve a better standard of living and to achieve the goals they always try to engage themselves in maximum number of economic activities. They involve themselves in primary, secondary and tertiary activities. They always try to conduct their activities in a cost effective manner. The cost effective activities entail maximization of profit and minimization of cost.
Characteristics of Economic man:
· Almost 90% Homo Sapiens are Economic men.
· Economic men are not satisfied with their present standard of living.
· Try to involve economic activities to increase their income.
· Conduct their activities in a cost effective manner.
· Increase income so that they achieve better standard of living.
Origin of Homo Sapiens:
The planet earth is the only habitable place in the universe. It is habitable for living organisms.
The age of our planet earth is approximately 4.8 billion years.
2 millions years ago Homo-Sapiens first arrived in the Pleistocene period. At first they arrived at Kenya, Somalia and Ethiopia (Horn of Africa), Caucasus mountain area and Greater Mongolia.
The people of the Horn of Africa are called “Negroid”. Their skin is dark, curly hair, non-portruted nose, open lid eyes and are big in size.
The people of the Caucasus Mountain are called “Caucasoid”. Their have fair skin, curly hair, open lid eyes and are medium in size.
The people of the greater Mongolia are called “Mongoloids”. Their have yellow complexion, straight hair, semi open lid eyes and are small in size.
How natural landscape turn into cultural landscape ( VERY IMPORTANT) PLEASE SEE THIS DIAGRAM IN TSR
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Natural
Landscape
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Urbanization
Urbanization refers to a process in which an increasing proportion of an entire population lives in cities and the suburbs of the cities. Historically it has been closely connected with industrialization, when more and more sources of energy were used to enhance human productivity (industrialization), surplus increased in both agriculture and industry.
Secondary economic activity has a motion of industrialization leading to urbanization. Due to urbanization internal migration took place.
Economic men conduct various economic activities in cost effective manner. At first they do primary economic activities to survive. When they want to maximize their profit and to increase their income, they do secondary economic activities. In this stage they add additional value with their activities. These activities are held into a processing system of an industry. In this way industrialization is occurred. Therefore industrialization leads to urbanization. Internal migration (rural to urban) happen due to higher job opportunity, high wage rate and so on.
Finally natural landscape changed into cultural landscape and due to this environmental degradation occurred. We should try to mitigate this for a better environment.
LECTURE 4
Determinants of Economic activities (Nature Induced)
Determinants of Economic activities mean variables those determinants or help the economic activities. It is divided into two types
Natural (nature induced-created by mother nature)
Cultural (man induced created by man)
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Temperature: ( VERY IMPORTANT)
The temperature near equator and near tropic is high. On the other hand, temperature in the temperate region and polar area is cool.
Wind pressure:( VERY IMPORTANT)
Wind pressure depends on temperature. When the temperature in the low latitude area is high, the atmosphere pressure is low. The more we go towards the pole the atmosphere pressure becomes high.
Wind system: ( VERY IMPORTANT)
The existence of wind pressure is responsible for the creation of wind system. In the low latitude region wind system is dominated by the monsoon.
Precipitation: ( VERY IMPORTANT)
Precipitation happens when there is a rainfall, snowfall or frost. In the tropical region when temperature is high, wind pressure is low precipitation occurred through rainfall.
River System: ( VERY IMPORTANT)
It creates a hydrological cycle, which is also known as water cycle. In this cycle when the sunray directly falls on riverbed the water gradually evaporated. It then goes up and forms cloud. When the clouds get heavier, it comes down the earth surface through precipitation.
Vegetation & Soils: ( VERY IMPORTANT)
In equatorial and tropical area soil are fertile due to climatic condition. So these areas are appropriate for the growth of natural vegetation. But if we go to the towards pole soil is not very good condition and the environment is not friendly also.
Determinants of Economic activities (Man Induced)
Man induced parameters are those economic parameters, which are created by economic man. We also call it cultural landscape. It is the function of different kinds of economic activities conducted by economic man. The secondary and tertiary economic activities are dominated by man induced parameters. So those regions, which are engaged in secondary and tertiary economic activities or has the influence of man induced parameters are the urbanized and the developed regions.
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Socio-Economic:
Different types of socio-economic aspects give their influence to join or activate any kind of activity. The Income of the people has some difference according to their education and other related matters. Income and education also give their influence to creating social class.
Demographic:
Demographic parameters indicate people’s age, sex, and natural increase etc. parameters. Age and sex also give their influence on dependent and independent population of any society.
Historical:
Historical parameters influenced by different types of historical events of a nation. In our country we always try or like to follow our previous historical rules, which was introduced by British.
Political
Government policy to conduct or making any event has an important influence. These policies always help us to start or activate any kinds of activity.
LECTURE 5
PCE Mechanism
A DIAGRAM WHICH IS NOT VISIBLE HERE IS VERY IMPORTANT SO PLEASE HAVE LOOK ON TSR FOR THIS DIAGRAM
Earth as a whole is an accumulation of numerous market places for economic men. The tool of function in this market is a complex system named PCE mechanism.
PCE mechanism refers to any process that increases economic value of a commodity beyond the value of its raw materials inputs. PCE mechanism is an economic system under which economic men conduct their economic activities in a cost effective manner in the market place.
PCE mechanism is the combination of production, consumption and exchange regimes.
Producer produces goods & services to satisfy and meet the demand of the consumers.
Exchange mechanism works as a link between the producers and consumers by facilitating
· Investment
· Transportation
· Searching new market
This system is very much dependent on the consumers and their income as demand for quantity and variety of products depend on the income of the threshold population.
Threshold population of any PCE mechanism is given by the number of population weighted by their income (purchasing power).
Exchange refers to a process by which goods and services are transferred or traded from one location to another location where they have more worth to end users. This exchange is known to increase place utility of a commodity.
Form utility: the value of a commodity that attributed its form or physical characteristics.
Place utility: the worth of a commodity at a given location. Value is added by altering commodities from and place.
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