2. Structure of the economy

Question 1

What are the 3 sectors of an economy?

Answer 1

There are three main types of industry in which firms operate. These sectors form a chain of production which provides customers with finished goods or services.

The sectors are:
PRIMARY
SECONDARY
TERTIARY

Question 2

What is the primary sector?

Answer 2

Primary production: this involves acquiring raw materials. For example, metals and coal have to be mined.

Question 3

What is the secondary sector?

Answer 3

Secondary production: this is the manufacturing and assembly process. It involves converting raw materials into components, for example, making plastics from oil. .

Question 4

What is the tertiary sector?

Answer 4

Tertiary production: this refers to the commercial services that support the production and distribution process, eg insurance, transport, teaching.