CONSUMPTION PATTERNS IN THE UNITED STATES Name: __________________________________________________________________________ Hour: ____________ Directions: Use your textbook and any

handouts you have completed to help you answer the following questions. Then use this study guide to help you review for your test. It will be collected for a grade. Part 1 Basic Information 1. Define each of the following terms in your own words. (7.2) a. Consumption: The using up of goods or services b. Developed country: A wealthy country with an advanced economy; have many industries and provide a comfortable way of life for their citizens c. Developing country: A poorer country with a less advanced economy; try to increase their industries and improve life for their people d. Gross domestic product (GDP): Total value of goods and services produced in a country in one year e. Per capita: Per person 2. Complete the following chart comparing developed countries and developing countries. Include as many details as possible, commenting on: number of countries, location in the world, rural vs. urban, role of the government and benefits provided, wages, consumption level, and GDP. (7.2) Developed Country Wealthy country 30 around the world USA, Canada, Western Europe, Australia, and New Zealand Live well mostly in urban areas and work in factories and offices Governments provide many benefits public schools, fire protection, safe drinking water Higher wages more consumption Developing Country Poor country 150 around the world Asia, Africa, and Latin America Still building their economies Fewer industries Live mostly in rural areas and work on farms Less stable governments don t provide as many benefits Lower wages less consumption

3. Write a sentence comparing the number of calories people need with how many people get in both developed countries and developing countries. This means that you will include three different calorie amounts. (7.3) People in developed countries tend to consume about 3300 calories, which is more than the average of 2700 calories that is needed to live a healthy life, while people in developing countries tend to consume about 2400 calories per day. 4. What is the main cause of hunger in the world? (7.3) The main cause of hunger in the world is not a shortage of food; rather, it is poverty, meaning that people cannot afford to purchase the food they need.

5. Although the United States makes up 5% of the world s population, it uses 25% of its oil, making it the leading oil consumer in the world. (7.4) 6. Look at the graph on page 113. Write a sentence explaining what this graph is showing in your own words. (7.6) This graph is showing the average hours worked per person, per year in 2003 for six developed countries. According to this graph, the United States works the most hours of these developed countries. 7. What is the global consumer class? (7.7) The global consumer class is made up of people who earn at least $7000 per year. About 75% of people in the developed world belong to the global consumer class, while only 16% of people in the developing world belong to the global consumer class. 8. List and describe the benefits of recycling. (7.7) Recycling saves resources from having to be used in the first place to make new products, and it also reduces trash since the old items are refashioned into something new instead of being thrown out. Part 2 Graph Analysis (7.8, page 117) 9. Look at the graph on the bottom of page 117. Explain what both the horizontal (side-to-side) and vertical (upand-down) axes show. The horizontal axis shows the type of material being recycled, while the vertical axis shows the percentage recycled. 10. Why do you think materials such as auto batteries might have such a high recycling rate, while common items such as plastic and glass containers have such lower recycling rates? Auto batteries are recycled by the auto shop when a person goes to change their battery. There are incentive programs that encourage people to return the used battery. On the other hand, recycling plastic and glass containers is completely optional. Also, these are used far more frequently than auto batteries, so it is easier for them to get thrown out instead of recycled.

Part 3 Graph Analysis 2 (7.7, page 114) 11. Look at the graph on page 114. Explain what this graph is showing in your own words. This graph is showing a comparison of the number of people in the consumer class in developing countries compared to developed countries.

12. How many people from developing countries were part of the consumer class in 2003? (Hint: Remember that the people in the graph are in millions.) 820 million people from developing countries were part of the consumer class in 2003. 13. What was the total population in developing countries in 2003? The total population of developing countries in 2003 was 5,250,000,000. 14. What percentage of people in developing countries were part of the consumer class in 2003? (Hint: To find percentage, divide the number of people in the consumer class by the total population.) 820,000,000 / 5,250,000,000 = about 16% About 16% of people in developing countries were part of the consumer class in 2003. 15. What was the total population in developed countries in 2003? The total population of developed countries in 2003 was 1,210,000,000. 16. How many people in the developed countries were part of the consumer class in 2003? 910 million people from developed countries were part of the consumer class in 2003. 17. What percentage of people in developed countries were part of the consumer class in 2003? (Hint: To find percentage, divide the number of people in the consumer class by the total population.) 910,000,000 / 1,210,000,000 = 75% About 75% of people in developed countries were part of the consumer class in 2003. 18. Write a sentence comparing the percentage of people in the consumer class from developing countries with the percentage of people in the consumer class from developed countries. About 75% of people in developed countries were part of the consumer class in 2003, compared to only 16% of people in developing countries that were part of the consumer class in 2003. 19. Imagine that the percentage of people in the developing world was suddenly as large as the percentage of people from the developed world. Multiply the total population in developing countries by the percentage of people in the consumer class from developed countries you found earlier. How many people are now in the consumer class in developing countries? 75% = 0.75 0.75 x 5,250,000,000 = 39,337,500,000 There would be 39,337,500,000 people from developing countries in the consumer class if the consumer class in the developing world grew to the same size (75%) as it is in the developed world. 20. What might be some of the consequences or results of a large growth in the developing world consumer class? Write your answer with as much detail as possible using COMPLETE SENTENCES! Some of the consequences of a growing consumer class could be: a. People buying more products b. A large increase in demand for many products c. A large increase in demand for food, which could cause a shortage d. A large increase in demand for oil to fuel cars and other methods of transportation and to make products, which could cause a shortage e. More taxes raised, which could mean better governments and more governments services provided