Chapter 3 Review The Economy of West Virginia

the study of the consumption, production, distribution, and exchange of goods and services

economics

basic needs

food, clothing, and shelter

activities people do for a fee.

Services

A person who purchases a product or service

consumer.

three types of resources

natural, human, and capital

the money or property used to produce goods and services.

capital resources

when you give up one thing in order to achieve a more desirable outcome

trade-off

the quantity of a good or service offered for sale

Supply

the quantity of a good or service consumers are willing and able to buy.

demand

the amount left after costs are subtracted from the price

profit

The four basic economic questions

1) what; to produce,

2) how to produce;

3) how much to produce,

4) for whom to produce.

 three basic kinds of economiestraditional, command, and market

customs, habits, and beliefs

traditional economy

the government controls the economy

command economy

based on supply and demand.

market economy

they cannot be replaced by nature once they are used

nonrenewable

Region that supports a large _agricultural, poultry, and livestock economy.

Potomac Section

region that is the location of major wood-related industries

Allegheny Highlands

region contains coal, oil, and natural gas.

Allegheny Plateau

percent of the total coal produced nationally

15 percent

two types of salt deposits

rock salt and

brine

leading producer of natural gas east of the Mississippi River

West Virginia

accounted for nearly 50 percent of the value of West Virginia’s total nonfuel mineral production in 2005.

Crushed stone

plants and animals, also called flora and fauna.

Biological resources

West Virginia hardwoods are in great demand by

furniture manufacturers

Largest animals black bear and the white-tailed deer

the manufacture, production, and sale of goods

Industry

first pioneer industries

cottage industries

first major industry

Salt

first major iron furnace in present-day West Virginia was built around the year 1742 on land owned by

Lord Fairfax

Wheeling was nicknamed

“Nail City.”

the state’s iron industry converted to the production of

steel

major steel-producing cities

Weirton and Wheeling

the largest steel company in the world

Arcelor-Mittal

Early use of timber

crossties, boards for houses and flatboats, lumber for furniture, and material for barrels. Bark was used to tan hides.

the careful management of a natural resource to prevent its destruction

conservation.

they raised only enough crops to feed their families.

subsistence

The first cash crops

tobacco, corn, and fruit

Coal mined in West Virginia

bituminous (soft) coal

mentioned coal in his report in the 1742 exploration

John Peter Salling

struck oil while they were drilling salt wells in the area around Burning SpringsWilliam P. and John Rathbone

Glassmaking in West Virginia has taken two directions hand-blown glass

automated factories

The chemical industry began in West Virginia during

World War I.

first West Virginia plant at Alloy

Union Carbide

One of the newest industries in West Virginia

electricity-producing

father sold his land in Virginia and moved the family to the Kanawha Valley in 1796.

David Ruffner’s

located at Point Park in Parkersburg

Oil and Gas Museum

is the oldest, although not continuously producing, well in the United States

Rathbone well