Chaper 1.2 Classification Of Businesses

Question 1

Economic sectors

Answer 1

Primary sectors
Secondary sectors
tertiary sectors

Question 2

Primary sector

Answer 2

Extracts and uses natural resources

Question 3

Secondary sector

Answer 3

Manufacture of goods using resources extracted from primary sector

Question 4

Tertiary sector

Answer 4

Services provided in an economy

Question 5

Deciding importance of economic sectors within a country

Answer 5

Depends on:
Number of workers in each sector
Value of output of goods in each sector

Question 6

De-industrialization

Answer 6

Decline in the importance of secondary sector in a country(less)

Question 7

Factors that affects changes in importance of the 3 sectors

Answer 7

• sources of primary products become depleted
• developed countries losing competitivenes in manufacturing to newly industrilized countries
• Wealth increases that results in higher living standards where consumers would spend on services rather than manufacture products(services important for them)

Question 8

Mixed economy

Answer 8

Having a private an public sector

Question 9

Public sector

Answer 9

A firm run by a government(public sector authority)to prvide essential services

Question 10

Private sector

Answer 10

An individual firm which id market/profit-driven

Question 11

Advantages of private sectors company

Answer 11

More efficient (more focused on profits)
More competitive between other private sectors which force to improves the overall quality and lessen price
Reduce tax payements(public sectors companies’ expenses are form taxes)

Question 12

Disadvantages of private sectors

Answer 12

Can force to unemploy people for the sake os cutting costs(labour costs)
Do not focus on social objectives