Chapter 2 Flashcards
Primary sector
Businesses that extract and use natural resources to produce raw materials
Secondary sector
Businesses that manufacture goods using the raw materials provided by the primary sector.
Tertiary business
Businesses that provide services to consumers and other firms.
Deindustrialisation
Decline in the importance of secondary, manufacturing industry.
Mixed economy
This has both private sector businesses and public sector businesses.
Private sector
Businesses owned by people, not the government/state.
Public sector
Businesses owned by the government/state.
Privatisation
The sale of public sector businesses to the private sector.
Why the importance of sectors changes?
-Primary sector resources get used up
-Factory costs (usually wages) are too higher
-People spend more on the tertiary sector as they become wealthier