classification of businesses Flashcards
define the primary sector
industry extracts and uses natural resources of Earth to produce raw materials used by other businesses
define secondary sector
industry manufactured goods using raw materials provided by the primary sector
define tertiary sector
industry that provides service to consumers and other sectors of industry
how to compare sectors of economy to see the relative importance of economic sector (2)
percentage of the country’s total number of workers employed in each sector
value of output of goods and service and the proportion this is of the total national output
define de industrialisation
the decline in the importance in the secondary manufacturing sector of industry in a country
reason why de industrialisation happen (3)
sources of primary resources have depleted
losing competition to NIC like brazil, china and India
as living standards increase, customers tend to spend money on services and restaurants rather than manufactured goods
what is mixed economy
both private sector and public sector
what is private and public sector
private-business is not owned by the government, they make own decisions and aim for profit
public- government/ state owns, goc makes decisions and money comes from the taxpayers
which activities are in public sector (6)
health, education, defence, public transport, electricity and water supply
what is privatisation
sell public sector business to private sector businesses
advantages of privatisation (3)
more efficient as their main obj is finance
they invest more capital
competition helps improve product quality
disadvantages of privatisation(2)
make ppl unemployed to cut cost
focus less on social obj
define capital
the money invested into a business by the owners
