Economic Activity and Energy

Question 1

Economic Activity

Answer 1

• Economic Activity Pertains to actions associated with the production, distribution and consumption of goods and services.
• Economic activities fall into four key types: primary, secondary, tertiary, quaternary.
• They are cruicial to a country’s economic growth, employment rates, and general well-being of citizens.

Question 2

Primary economic activites

Answer 2

• Primary activities involve extracting or harvesting natural resources directly from the earth.
• examples: Farming, Fishing, Mining, Forestry

Question 3

Secondary economic activities

Answer 3

• Secondary activities involve processing and manufacturing raw materials into finished goods.
• Examples: Food production, prodcing furniture, building cars, making clothing.

Question 4

Tertiary economic activities

Answer 4

• Tertiary activites are services that support primary and secondary activities or provide services to other businesses or consumers.
• Examples: Banking, retail, education, healthcare

Question 5

Quaternary Economic activities

Answer 5

• Quaternary activities involve information processing or research and development. These are often seen in highly developed econamies.
• examples: software development, scientific research, data analysis.

Question 6

Importance of Economic activities

Answer 6

• Economic diversification: Different types of economic activies help to diversify an economy, reducing risk and aiding stability.
• Emplyment: Each sector provides different types of jobs and thus emplyment opportunites.
• Wealth generation: Economic activity results in wealth creation, which is critical for economic growth and the well-being of citizens.

Question 7

Environmental impact

Answer 7

**Economic actvities have significant environmental impacts, both positive and negative. **
* Primary activities often result in soil depletion, desertification, deforestation, pollution.
* Secondary activities, such as manufacturing contribute to air and water pollution, while also generating hazardous waste.
* Tertiary and quaternary activities are less directly harmful to the environment. But do support the expansion of lower sectors.

Question 8

Social impact

Answer 8

• Economic activities affect the standard of living and quality of life within a society.
• Negative social impacts due to activites that harm the environment can lead to health problems, displacement of populations, heightened soical inequality.
• Wealthier nations and individuals often have more access to high-value resources, leading to an inequitable distribution of wealth and power.

Question 9

Economic impact

Answer 9

• Economic activites generate wealth and contribute to a country’s Gross Domestic Product (GDP).
• Economic activites also determine the s**tructure and growth trajectory **of an economy.
• Dependence on finite resources such as fossil fuels or certain minerals, can make economies vulnerable to resource scarcity and price fluctuations.

Question 10

Factors influencing location of econmomic sectors

Answer 10

• Every type of economic activity has a particular location.These factors relate to the needs of the economic activity
  Physical factors include:
• Raw materials - industries require raw materials to produce goods
• Land - land costs and how much is available
• Energy - where the industries get their power supply.
  Human factors include:
• Capital - the money that is available to set up and run the economic activity.
• Transport and communications - accessibility by road, air and rail.
• Market - how close the industries are to the market.
• Labour - all industries need workers
• Government policy - tax incentives, cheaper rent

Question 11

Primary sector Location

Answer 11

• Distance from market and cost of transport would be particularly important for mining due to the bulky products
• Climate would be more important for agriculture
• Climate - precipitation, sunshire hours, temperature - all affect the type of crops grown.
• Land - the amount of land available
• Transport - access to roads to transport crops, animals, mined materials

Question 12

Secondary sector location

Answer 12

• The weight of raw materials and the finished product as heavier, bulky products cost more to transport
• The size of the factory required, car manufacture needs much more space than food processing or clothing production
• How close the activity needs to be to raw materials depends on the industry.
• Large areas of land often required - so cost is important.
• Energy - A power source is needed
• Transport - access to roads is essential to bring in raw materials and send out products.

Question 13

Location of primary industry changes

Answer 13

• Drought, soil erosion, flooding and other events may lead to decreased growth of crops/raising of livestock
• Raw materials may run out in an area or become economically unviable
• Climate change may affect the types of crops which can be grown

Question 14

Tertiary sector location

Answer 14

• Proximity to the customers
• The amount of land depends on the type of economic activity.
• A power source is needed.
• Labour - Skilled and unskilled workers are needed.
• Transport - needs to be accessible for customers and workers.

Question 15

Quaternary Sector location

Answer 15

• Proximity to skilled workers and universities
• Pleasant working environment
• Land - science parks need large areas usually on the rural-urban fringe.
• Energy - a power source is needed
• Labour - Skilled labour needed
• Transport - accessible for workers.

Question 16

Decentralisation

Answer 16

The movement of shops, offices and industry away from urban centres in MEDCs into retail and buisness parks in the suburbs.

Question 17

Deindustrialisation causes

Answer 17

• COMPETITION FROM ABROAD
• MECHANISATION
• REDUCED DEMAND
• GREATER VALUE-ADDED AND PRODUCTIVITY IN THE SERVICE INDUSTRIES

Question 18

Changes over time

Clark-FIsher model

Answer 18

• In the pre-industrial period, the primary sector dominates with steady increases in the secondary and tertiary sectors.
• As countries develop the reliance on the primary sector for GDP and employment rapidly decreases.
• In the** industrial** period the amount of GDP and employment in the secondary sector increases to become dominant and then decreases. The primary sector continues to decrease and tertiary increases.
• In the post-industrial phase, the tertiary and quaternary secotors increase whilst the secondary and primary secotors decrease. The tertiary sector dominates employment and GDP in the post-industrial period.

Question 19

Causes of Changes overtime

Answer 19

• Increasing mechanisation in agriculture led to a decrease in the jobs available
• People moved to urban areas to find jobs in secondary and tertiary sectors
• Increasing mechanisation and global changes led to a decrease in secondary employment in some countries
• Technological improvements have led to an increase in tertiary and quaternary employment

Question 20

Changes in manufacturing activites

Answer 20

• Transport is faster and cheaper which means products can be moved around the world
• An increase in (TNCs) with factories and offices in many countries
• Factories were once tied to a power source of coal supplies or water. Electricity is now available almost anywhere
• The internet means instant communication
• Government policies in emerging and developing countries are aimed at attracting manufacturing often using tax incentives
• Cheaper labour, less strict health and safety, cheaper land and more workers are all available in developing and emerging countries. These reduce costs and increase profits
• Raw materials may no longer be available in the area

Question 21

Changes in location of tertiary and Quaternary activities

Answer 21

The location of tertiary and quaternary economic activities is increasingly located in rural (greenfield) areas on the rural urban fringe due to a number of factors:
* There is more open space for expansion and car parking
* Land is cheaper
* More accessible
* Located near the suburbs and commuter village - good access for workers and customers
* Increase in science parks, business parks and retail parks where similar businesses are located together
This process is known as decentralisation

Question 22

Causes of Change in employment

Answer 22

• In developing countries, such as Kenya, more people are employed in the primary sector because a high percentage of the rural population are subsistence farmers and the countries depend on raw material exports to developed and emerging countries.
• In emerging countries, such as China, the dependence on secondary economic activity increases because
  Factories are located in emerging countries due to lower costs and more raw materials may be available in these countries. Also Government policies aim to attract companies to locate there.
• In developed countries, such as the UK, there is dependence on tertiary economic activities because Education levels are higher so people want tertiary sector jobs, which are higher paid than secondary and primary jobs. Deindustrialisation means there are fewer jobs in secondary economic activities. Mechanisation means there are fewer jobs in primary and secondary economic activities.

Question 23

Reasons for Changes in the Numbers of People Employed in Economic Sectors

Answer 23

Availability of raw materials - raw materials may be run out, crop/livestock production may be reduced due to climate change.
Globalisation - Industries can be spread all over the world.
Technology - Fewer jobs in farming and factories due to mechanisation. Internet means companies manage factories from differernt countries.
Demographic changes - increasing population=greater demand for products and servies. People have more disposable income.
Government polices - target particular economic activities to lacate in countries using tax incentives, cheaper rent.

Question 24

Case study: Sector shift in the Uk

Answer 24

• The UK = post-industrial stage of the Clark-Fisher model
• The first country to experience the Industrial Revolution.
• In the 1800s jobs in primary economic activities were rapidly declining reaching 15% in 1900.
• In 1900 (over 60%) worked in secondary economic activities and tertiary economic activities were also steadily increasing.
• In the 1950s tertiary economic activities overtook secondary economic activities.
• In 2021 over 70% of people in the UK are employed in tertiary economic activities
  *These changes have both positive and negative impacts. *

Question 25

Case study: Sector shifts in the Uk - impacts

Answer 25

**Positive Impacts: **
* Deindustrialisation has led to improvements in the environment and decreased levels of pollution.
* The UK has developed expertise in secondary and tertiary economic activities which are in demand around the world.
* London is the second most important financial centre in the world.

**Negative Impacts: **
* Deindustrialisation led to high numbers of job losses particularly north of the UK.
* Job losses in secondary industries led to large areas of deprivation, especially in inner cities such as Liverpool and Leeds.
* Increasing numbers of (TNCs) have moved their factories and offices to emerging and developing countries.

Question 26

Case Study: Sector Shift in China

Answer 26

• China = industrial stage of the Clark-Fisher model.
• In 1950 over 80% of the population were employed in primary economic activities - mainly agriculture.
• In **1978 **China opened up to trade with the rest of the world and invested heavily in manufacturing.
• By 2005 primary economic sector employment had dropped below 50%. Most people were employed in secondary and tertiary economic activities.
• In 2020 tertiary economic activity employment was increasingly important

Question 27

Case Study: Sector shift in China - Impacts

Answer 27

**Positive impacts: **
* Improved incomes and higher standard of living.
* More investment in education and health services.
* Increased investment by (TNCs)
* Investment in roads, airports, ports and other infrastructure

**Negative Impacts: **
* Increasing gap between regions as some area’s economies grow more rapidly.
* Increased gap between rich and poor.
* Air, water and noise pollution increased
* Increased reliance on fossil fuels to supply energy (China one of the world’s largest CO2 emitters).

Question 28

Informal Employment

Answer 28

Informal employment is any employment which is unregulated and unofficial
More than 60% of the world’s employed population work in informal employment.
93% of informal employment is in developing and emerging countries.
Examples of jobs in the informal economy include:
Shoe shining
Rubbish collecting
Selling fruit or other products on the street
Para-transit - including rickshaws and tuk tuks

Question 29

Causes of Informal employment

Answer 29

• People want to avoid paying taxes.
• Lack of qualifications/education
• Need flexible hours to fit around their family
• High levels of rural-urban migration. Leading to more people than jobs available.
• Employers want to avoid paying holiday pay/sick pay.
• Low wages mean people have to have several jobs to make enough

Question 30

Impacts of Informal Employment

Answer 30

People working in the informal economy:
* Have no healthcare benefits
* Are often exposed to health or safety risks
* Have no contracts or guaranteed pay
* Have no holiday or sick pay
* Para transit often causes congestion (if motorised they cause pollution)
* Lack of regulations means workers are often exploited by employers
* Many children working in informal employment
* Children may be exposed to health risks, drugs, violence and crime
* Governments collect less in tax because the jobs are not official

Question 31

Case study: informal Employment in Dhaka

Answer 31

Dhaka is the capital of Bangladesh.
It is a megacity - population of 22.5 million people.
400,000 people migrate to Dhaka each year
Estimates suggest that over 75% of the population are engaged in informal employment:
* 500,000 rickshaw drivers
* 80,000 waste related workers
* Workers in small workshops
* Casual workers in restaurants and hotels
* Day labourers in construction
* over 690,000 children in Dhaka involved in informal employment
* Many of Dhaka’s informal workers live in informal settlements

Question 32

Case Study: Characteristics of Dhaka’s informal sector

Answer 32

• Low pay
• Long working hours
• Temporary or part-time work
• Underemployment
• No benefits such as holiday pay or sick pay
• Poor and unhealthy working conditions
• Health and safety risks
• Exploitation by employers
• No legal protection

Question 33

Underemployment vs Unemployment

Answer 33

Underemployment is when a person has work but is not working as many hours as they want to.
Unemployment is when a person is not working.

Question 34

Population and Resources

Answer 34

• Economic activities involve the use of resources and energy.
• The rate at which resources & energy are used depends on two main factors:
  1. The population size
  2. The rate of development
• Many resources including energy sources are finite and non-renewable.
• Each country/area has a carrying capacity
• The population that results in the highest standard of living is the optimum population:
  There are not so many people or so few resources that the standard of living falls.
  There are enough people to develop the resources of the country

Question 35

Underpopulation

Answer 35

Underpopulation is when the population is too small to develop the resources effectively.

Question 36

Over population

Answer 36

Is when there are too many people or too few resources to ensure a high standard of living.

Question 37

Population pressure

Answer 37

occurs when the population is greater than the **carrying capacity. **

Question 38

Theories of Thomas Malthus

Answer 38

Malthus proposed his theory in 1798: (Specifically food)
Population growth is increasing at a faster rate than food supply.
There will be a time when there is not enough food to sustain the population.
As a result, population growth will stop as a result of a Malthusian catastrophe - famine, disease or war.
These are known as positive checks as they increase the death rate.
Preventative checks are factors which decrease the birth rate.
These limiting factors maintain the balance between population and resources.
Malthus’s predictions were incorrect as they came before much of the technological developments which have enabled food supply to be increased.

Question 39

Theories of Ester Boserup

Answer 39

Ester Boserup put forward her theory in 1965: (Specifically food)
Population growth will stimulate developments in technology to increase food production. More efficient resources will be discovered/used.
Renewable resources will replace non-renewable.

Question 40

Energy Demand

Answer 40

• Global energy demand has rapidly increased.
  Population growth and development are the two main causes of the increase in energy demand:
  1. The higher demand for food leads to more intensive farming which requires more energy for machines, light and heat.
  2. Increasing industry requires energy for heating, lighting and machinery
• There is more transport which requires energy in the form of petrol, diesel or electricity
• Urbanisation increases with development increasing domestic appliances, heating, lighting.
• Increased wealth means people buy more appliances and technology which require energy
  Countries with the highest energy consumption per person are developed countries (Canada, Norway and Saudi Arabia)
  Countries with the lowest energy consumption per person are developing countries are all in Africa (Niger)

Question 41

Global energy sources

Answer 41

**Energy Mix: **
Oil 33%
Gas 24%
Coal 27%
Nuclear 4%
Hydroelectric 6%
Other renewables 5%

Question 42

Energy Production

Answer 42

• Energy sources are not evenly distributed across the world. Some areas produce very little energy due to a lack of natural resources or they do not have the money to exploit the resources.
  The main producers of fossil fuels for primary energy are:
• USA
• Canada
• Norway
• Russia
• Australia
• Middle East
  The world’s largest producers are often the largest consumers of energy.

Question 43

Quinary Sector (5th sector)

Answer 43

The highest levels of decision making in an economy - the top business executives and officials in government, science, universities, non-profit organisations, healthcare, culture and the media. It is concentrated in STEM employment.

Question 44

Energy Security

Answer 44

An energy gap is when a country cannot meet the demand for energy using its own resources. When countries have an energy gap, they have to import energy to meet the demand. Having an energy gap means that a country is not energy secure.

To be energy secure a country needs an:
* Uninterrupted supply of energy
* Affordable supply
* Accessible supply
The UK has a widening energy gap and is not energy secure because:
Renewable energy is not as efficient and so cannot replace in full energy from fossil fuels. It is cheaper to import fossil fuels than it is to exploit the resources in the UK.

The commitment of many countries to tackling climate change and reducing the use of fossil fuels has increased energy insecurity for many countries.

Energy security can also be affected by:
Energy sources running out
War/conflict
Natural hazards
Political disputes

Question 45

Non-Renewable energy

Answer 45

Non-renewable energy are energy sources which are finite and will eventually run out.
eg. Gas
Oil
Coal
Nuclear
* Fossil fuel energy sources are one of the main sources of greenhouse gas emissions

Question 46

Advantages & Disadvantages of Non-renewable energy sources

Answer 46

Gas:
Advantage: Efficient, Least polluting, Easy to transport, Easy to produce energy from, Reliable.
Disadvantage: Risk of explosions, Releases CO2, Air pollution, Price fluctuates
**Oil: **
Advantage: Efficient, Less polluting than coal, Quite easy to transport, Easy to produce energy, Reliable
Disadvantage: Risk of oil spills, Risk of fire/explosions, Low world reserves, Releases CO2 one of the main greenhouse gases, Price fluctuates
Coal:
Advantage: Large world reserves, Mechanisation and tech made it more accessible, Cheap, Efficient, easy to produce energy from, reliable
Disadvantage: Releases, CO2, Releases SO2 (leads to acid rain), Mining acidents, Heavy transport
**Nuclear: **
Advantage: No greenhouse gas emissions, Efficient, Small amounts of uranium needed
Disadvantage: Nuclear waste is radioactive and expensive to dispose, Power stations are expensive, Risk of nuclear accidents, Possible health impacts

Question 47

Renewable energy

Answer 47

Renewable energy are energy sources which are** infinite** and will not run out. eg.
Hydroelectric
Wave/tidal
Wind
Solar
Geothermal
Biomass/waste
* Once in place with the exception of biomass/waste they do not produce any greenhouse gas emissions.
* Greenhouse gases may be emitted in the production, construction and transport of the equipment.

Question 48

Advantages+Disadvantages of Renewable energy

Answer 48

Hydroelectric:
Advan: No greenhouse gas emissions, Controls flooding downstream, Often in sparsely populated areas, May provide water storage
Disad: Flooding, Visual pollution, Settlements have to re-locate, expensive to build and maintain
**Wave/tidal: **
Advan: No greenhouse emissions, potential to produce large amounts, reliable
**Disad: **Expensive, Can affect marine ecosystems, Few suitable sites
**Wind: **
**Advan: **No greenhouse emissions, cheap, land or offshore, small or large scale
**Disad: **Not reliable as conditions have to be perfect, visual/noise pollution, may affect birds
**Solar: **
Advan: No greenhouse emissions, Can be used in most locations, Can be small or large scale
Disad: Expensive, Not reliable as only works when it’s sunny, Large numbers needed to produce energy
**Geothermal: **
Advan: No CO2 gasses, Lots of potential sites, Can produce lots of energy, reliable
Disad: Expensive, Emits Sulphuric gases
Biomass/waste:
Advan: Use waste or biomass which regrow, available in most locations
Disad: Air pollution, produced Greenhouse gasses, expensive

Question 49

Sustainable energy management

Answer 49

• Sustainable energy management is essential if future generations are to have the energy resources they need.
• Non-renewable sources will at some point run out.
  As supplies start to run out prices will increase this will mean:
• Economic development is harder as profits will decrease
• Countries with an energy surplus become more powerful
• Countries with an energy gap pay more to import energy
  Fossil fuels create pollution and emit greenhouse gases so the amount used needs to be reduced.
  Energy management can be Individual and national.
  Energy efficiency is key to making the most of energy sources as it cuts down on waste and reduces consumption. Less energy is used and fuel is used more economically

Question 50

Individual Management

Answer 50

There are many actions that individuals can take to reduce energy use or use energy more efficiently including:
* using public transport, walking or cycling
* Buy energy efficient (AAA rated) appliances
* Don’t leave electrical items on
* Install heat exchange
* Turn the thermostat down and wear more layers
* Install solar panels
* Led Lightbulbs
* Smart Meter

Question 51

National Management

Answer 51

Governments have several strategies to make energy use sustainable including:
* Invest in renewable technologies
* Encourage the switch to electric cars
* Invest in public transport
* Provide grants and loans for homeowners to install solar panels or insulation
* Building regulations to ensure that new homes are energy efficient

Question 52

Energy Management in Nepal

1

Answer 52

**Energy Use: **
* Nepal is a developing country located between China and India
* The landscape is mountainous and includes much of the Himalayas
* The population is rural with only 16% of the population living in towns and cities
* Energy demand is very low but growing as the country develops

**Energy Mix: **
* The main source of energy for 82% of the rural population is fuelwood
* In urban areas the use of fuelwood is 36%
* Nepal has no suitable coal, oil or gas reserves so these have to be imported
* 98% of all electricity in Nepal is generated through hydropower

Question 53

Energy Management In Nepal

2

Answer 53

Sustainable Future
* 88% of the population now have access to electricity
* Support from the World Bank has led to more investment in hydropower (over 3000 micro-hydro plants in Nepal).

Ruma Khola Micro-Hydro
* Completed in 2009
* Provides electricity for Darbang and five neighbouring villages
* It supplies energy for 22 industries
* Built and operated by the community
* micro-hydro plant was funded using grants from the government with support from the World Bank
* The loans are paid back using money that the community pay for the electricity supply
* It has improved the standard of living
* Reliance on kerosene and fuelwood has reduced and emissions have fallen
* Deforestation has decreased

Question 54

Energy Management in Norway

Answer 54

Energy Use
* Norway is a developed country
* The demand for energy is one of the highest in the world
* The population is mainly urban with 83% living in towns and cities
**Energy Mix: **
* 1% of the world’s gas reserves
* 0.3% of the world’s oil reserves
* Some coal reserves
* Norway is one of the world’s largest energy exporters
* Hydropower generates 90% of Norway’s electricity and accounts for 65% of energy use
sustainable future:
* Over 1500 hydropower plants in Norway
* Due to the reliance on hydropower Norway is expanding other renewable energy sources.
* Norway is expanding the number of wind farms: eg. currently 53 wind farms, 36 onshore and offshore are planned and completed by 2030.
* Norway is also investing in solar energy:
eg. Homeowners in Oslo get a 30% subsidy for installing solar panels
* To reduce the consumption of oil Norway is encouraging the population to move to electric cars. eg. In 2021 66% of all new car sales were electric