chapter 2

Question 1

define primary sector

Answer 1

the primary sector of industry extracts and uses the natural resources of earth to produce raw materials used by other businesses

Question 2

define secondary sector

Answer 2

the secondary sector of industry manufactures goods using the raw materials provided by the primary sector

Question 3

define tertiary sector

Answer 3

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

Question 4

what is a mixed economy

Answer 4

a mixed economy has both a private and a public sector

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 private sector

Answer 5

businesses not owned by the government. These businesses make their own decisions about what to produce, how it should be produced and what price should be charged for it.

Question 6

which business activities are usually in the public secotr

Answer 6

• health
• education
• defence
• public transport
• water supply
• electricity supply

Question 6

what is a public sector

Answer 6

government owned and controlled businesses and organisations. The government or other public secotr authority, makes decisions about what to produce and how much to charge consumers. Some goods and services are provided free of charge tot he consumer, such as the state goods and services.

Question 7

define capital

Answer 7

the money invested into a business by the owners