Chapter 7 Flashcards
output sectors
divisions of a macroeconomy based on what is being produced.
primary sector
the sector of the economy that involves the harvesting and extraction of natural resources and
simple processing of these raw materials into products that are generally sold to manufacturers as inputs.
secondary sector
the sector of the economy that involves converting the outputs of the primary sector into products suitable for use or consumption. It includes manufacturing, construction, and utilities.
manufacturing productivity
an index of the value of the goods produced per hour of labor in the manufacturing
sector
financial institution
any institution that collects money and holds it as financial assets.
financial assets
a variety of holdings in which wealth can be invested with an expectation of future return
financialization
a process in which the financial sector of the economy is increasingly able to generate and
circulate profits that are not closely related to the real economy
The harvesting of forest products would be a component of the __________ sector
Primary
Whereas the extraction of oil would fall under the ________ sector, the refining of petroleum would fall
under the __________ sector
Primary, Secondary
Utilities, such as electricity production, are a component of the __________ sector
Secondary
Marketing and retailing are a component of the ______ sector.
Tertiary
The tertiary sector is also called the ____ sector.
Service
The sector that dominates the U.S. economy, comprising 75% of all output, is the _____________ sector.
Tertiary
While the U.S. has less than ______ % of the world’s population, it uses about ________ % of the world’s
energy
5% World, 25% Worlds Energy
By 2012, the U.S. imported ________ % of its oil, most of it from the countries of _________, _________,
and _____________.
40% of Its Oil, Canada / Saudi Arabia/ and Mexico
Stocks, bonds, and money mutual funds are examples of _____________ assets
Financial
The sector that dominates the U.S. economy, comprising 75% of all output, is the ____ sector
Tertiary
T/F: The rudimentary processing of raw materials would fall under manufacturing in the secondary sector
False. It would fall under the primary sector.
T/F The products produced in the primary sector are generally sold to consumers in households.
False. They are generally sold as inputs to manufacturers
T/F The primary sector is no longer of great importance to the U.S. economy, given that it represents only
about 3% of the U.S. private economy and employs only 1% of U.S. workers.
False. The primary sector still plays an important role in the economy.
T/F About 60% of the U.S. fishery stocks are being harvested at or over the maximum sustainable level
True
T/F The absolute number of manufacturing jobs peaked years ago in virtually all industrial countries.
True
Briefly define the primary, secondary, and tertiary sectors
The primary sector involves the extraction and simple processing of raw materials which are sold as inputs into the production process. The secondary sector transforms these inputs into final products to consumers. The tertiary sector involves the provision of services, rather than tangible goods
How have the shares of the U.S. private economy attributed to each of the three sectors in the U.S. changed over the last few decades of the 20th century?
While the tertiary sector’s share of the private economy has grown over the last decades of the 20th century, both the
primary and secondary sectors have declined.
