Geography Study Guide Economic Activity= all those things that people do to try to make their lives better and more comfortable Gross National Product= the sum of all the economic activities of the citizens of a country in one year, regardless of where the money was earned. It may be expressed as GNP per capita, which is the average per person earnings. Informal Economic activities= work that people do not report as economic activity to avoid records being kept and taxes paid, such as garage and yard sales. Material wealth= goods and services that we can see touch and make our lives better, such as refrigerators to worship as we wish Non-material wealth= those factors that improve our lives but are difficult to touch or describe, such as human rights and the freedom to worship as we wish Quality of life= the amount of satisfaction we have with our lives, taking into account both material and bob-material wealth Stone Age= an early time of human history when technology was not well advanced and tools were often made of stone or bones. Urbanization= a shift of population from the rural areas to the cities, with resulting changes in people’s lifestyles. Fundamental elements of an economic system: Once people earn money, they spend it on goods and services that they need, creating other demands and more employment. Money is a convenient way of measuring the value of goods and services. {draw:frame} Purchase of dirt bike. {draw:frame} Shop employs people to sell {draw:frame} Truckers transport bike to shop {draw:frame} Factory employs workers to make bike Factory buys materials used to make {draw:frame} Bike materials shipped to factory. Metals, rubber, plastic produced from Raw materials, employing many people Fundamental elements of an economic system: What are the goods that are produced? {draw:frame} Things you purchase How are they produced? {draw:frame} Manufacturing For whom they are produced? {draw:frame} Who will buy it? How...