2. Classification of businesses

Question 1

define primary sector

Answer 1

industry extracts and uses natural resources of earth to produce raw materials used by other businesses

Question 2

define secondary sector

Answer 2

industry manufactures goods using the ra materials provided by the primary sector

Question 3

define tertiary sector

Answer 3

industry provides services to consumers and the other sectors of the industry

Question 4

what are the 3 sectors compared by for in importance?

Answer 4

1. percentage of the countries total number of workers employed in each sector
2. value of output of goods and services and the proportion this is of national output

Question 5

define de-industrialisation

Answer 5

occurs when there is a decline in the importance of the secondary manufacturing sector of industry in a country

Question 6

reasons for changes in importance of 3 sectors

Answer 6

1. sources of primary products become depleted
2. most developed economies are losing competitiveness in manufacturing to newly industrialised countries
3. as countries total wealth increases and living standards rise, consumers tend to spend a high proportion of their incomes on services than on manufactured products produced from primary products

Question 7

define public sector

Answer 7

gov (or state) owned and controlled businesses and organisations

Question 8

define private sector

Answer 8

businesses not owned by government

Question 9

define mixed economy

Answer 9

has both private and a public (state) sector

Question 10

define capital

Answer 10

is the money invested into a business by the owners