chapter 2

Question 1

what are the sectors of industry

Answer 1

1.primary sector:business that involves the extraction of natural resources
2.secondary sector:industry that manufactures natural resources
3.tertiary sector:industry which sells services to consumers or other sectors of the economy

Question 2

what does sector importance depend on

Answer 2

1.no. of employees
2.value of output

Question 3

reasons for changes in sector importance

Answer 3

1.depletion of primary resources
2.losing competitiveness to a newly industrialized country
3.living standards rise->higher demand on 3rd sector

Question 4

define mixed economy

Answer 4

both private and public sectors

Question 5

what is public sector

Answer 5

government or state owned

Question 6

aim of public sector

Answer 6

1.affordable
2.available
3.create jobs

Question 7

what is private sector

Answer 7

owned by individual

Question 8

aims of private sector

Answer 8

make profit

Question 9

define privatization

Answer 9

governments selling some public sector businesses to private sector businesses

Question 10

advantages of privatization

Answer 10

1.run efficiently
2.raises money for the government

Question 11

disadvantages of privatization

Answer 11

1.workers can lose job
2.monopoly->higher prices