Chapter 2 - Classification of Businesses

Question 1

Primary Sector

Answer 1

Firms whose business activity involves the extraction of natural resources

Question 2

Secondary Sector

Answer 2

Firms that process and manufacture goods from natural resources

Question 3

Tertiary Sector

Answer 3

Firms that supply a service to consumers and other businesses

Question 4

Chain of Production

Answer 4

The production and supply of goods to the final consumer involves activities from primary, secondary and tertiary sectors

Question 5

Mixed Economy

Answer 5

An economy where the resources are owned and controlled by both the private and public sectors

Question 6

Public Sector

Answer 6

The part of the economy that is controlled by the state or government

Question 7

Private Sector

Answer 7

The part of the economy that is owned and controlled by individuals and companies for profi