Economics

F. Matthews12-1-2008

• An economy is the system in which the products of a region are made, managed, and sold.

• Agriculture is the business of growing crops and raising animals.

• Crops grown in Louisiana are rice, cotton, sugar cane, and soybeans.

sugar cane

soybeans

rice

cotton

• Louisianans buy and sell many different types of products, from farm goods, such as milk and vegetables, to fuel for jet airplanes.

• Manufacturing is the largest part of Louisiana’s economy today.

• Manufacturing is the making of products.

• Louisiana manufactures many goods using oil, and other valuable minerals found in the state. One important kind of manufacturing in Louisiana is food processing.

Sugar is used in baked goods and drinks

• Food processing is the process of making agricultural products into food products.

• Fishing and transportation are two other major parts of Louisiana’s economy. Louisiana’s fishing industry makes more money than any other state except Alaska.

• Louisiana is surrounded by several bodies of water including the Gulf of Mexico and the Mississippi River, from which fish can be caught.

• Louisiana has some of the busiest ports in the world. Huge ships bring goods in and out of New Orleans and other ports. People pay to have goods shipped to and from these ports.

• A service is another important part of Louisiana’s economy. Services are jobs someone does to help others.

Teachers LawyersDoctors

Cash, checks and credit cards are forms of money that can be used to purchase goods.

• Cash is made up of the bills and coins that you are used to.

• The government prints bills at a special place in Washington, DC called the Bureau of Engraving and Printing.

• Coins are printed at places called mints.

Banks are a safe place where people save their money . If money is saved at a bank, you may use a check to pay for goods. Checks represent money that you have in the bank.

• Credit cards represent money that you will pay later. A credit card company loans you money. It gives you a plastic card that you can use to buy goods and services. Each month, the credit card sends you a statement in the mail that you have to pay back.