Chapter 2

Question 1

What does the primary sector extract and use?

Answer 1

The primary sector extracts and uses the natural resources of earth to product raw material used by other businesses.

Question 2

What does the secondary sector do?

Answer 2

The secondary sector of manufacturers goods using the raw materials provided by the primary sector.

Question 3

What does the tertiary sector do?

Answer 3

The tertiary sector of industry provides services to consumers and the other sectors of industry.

Question 4

What is de-industrialisation?

Answer 4

De-industrialisation occurs when there is a decline in the importance of the secondary, manufacturing sector of industry in a country.

Question 5

What is a mixed economy?

Answer 5

A mixed economy has both a private sector and a public (state) sector

Question 6

What is capital?

Answer 6

Capital is the money invested into a business by the owners

Question 7

What is privatisation?

Answer 7

When governments sell some public sector businesses to private sector businesses

Question 8

Why do governments do privatisation?

Answer 8

• private businesses are said to be more efficient

- competition between private sectors can help improve product quality