3.1 WHAT IS AN ECONOMY, FROM LOCAL TO GOLBAL?

Question 1

What is an economy?

Answer 1

Encompasses all of the activities related to production, consumption, and trade of goods and services in an entity, whether the entity is a nation or a small town

Question 2

Four employment sectors:

Answer 2

1. Primary sector
2. Secondary sector
3. Tertiary sector
4. Quaternary sector

Question 3

Primary sector

Answer 3

• Raw materials (natural resources) are extracted from the land and sea.
  E.g. Farmers, miners, forestry workers…

Question 4

Secondary sector

Answer 4

• Making things (manufacturing) from raw materials
  E.g. Factory workers, steelworkers, builders of houses, roads and railways…

Question 5

Tertiary sector

Answer 5

• Providing a service to others
  E.g. Teachers, doctors, collectors, shop assistants…

Question 6

Quaternary sector

Answer 6

• Involves a research and development - people have higher experience and skills
  E.g. Developers of new technology/new types of medical treatment, scientist, software developers…

Question 7

Where are these different types of jobs located?

Answer 7

1. Primary
   - Where the natural resources are located (coal mine, farm…)
2. Secondary
   - Various places (depends on where the raw materials for the products are located)
3. Tertiary
   - Towns and cities (where many people live and need services)