Economic Sectors Flashcards
Define primary sector
Extraction of raw materials(mining, farming, fishing, forestry)
Define secondary sector
Manufacturing process
Define tertiary sector
The product/service is sold (Knowledge-based)
How have the amounts of people working in the 1st,2nd and 3rd sectors changed over time in SA?
Tertiary sectors growing rapidly
Less in primary sector = less farmland = less food products being produced = food shortage
Describe skills needed in the primary sector.
Manual labour (physical jobs) Miners/farm workers - may need specialised skills to operate machines Managers in this industry need expert skills
Describe skills needed in the secondary sector.
Some unskilled labour to do monotonous tasks
Skills to operate specific machines
More advanced skills needed on complicated building projects
Define skills needed in the tertiary sector.
Most workers need to be skilled to render services or sell goods to consumers(professionals)
The sector that employs the most people
How can GDP(Gross Domestic Product) be increased?
Manage natural resources better Give people skills Attract capital Use technology better PPP(Private-Public Partnerships)
Define formal sector
Business is legally registered and pays taxes
Have formal arrangements with employees
Salaries and wages paid according to minimum requirements
Operates under the law of the country
Highly skilled workers
Define informal sector
Business is not legally registered and does not pay taxes
Does not have formal arrangements with employees
Wages are low and workers can be exploited
Not monitored by the government
People with less skill can start business
Name advantages and disadvantages of the formal sector
ADVANTAGES: Easy to get business loans and credit Have access to large consumer markets Attract better workers Access to legal support Create jobs and contribute to the economy Taxes help the country to operate
DISADVANTAGES: Expensive to register and start Regulations is a lot of administration Paying tax increase costs Owners should have some training in business management
Name advantages and disadvantages of the informal sector
ADVANTAGES: Cheap to start Do not pay income tax Can employ anyone without paying minimum wage Does not need a formal building
DISADVANTAGES:
Difficult to get financial loans
Difficult for the business to grow
It is against the law because it does not pay taxes
Define RDP
Reconstruction and Development Programme (RDP) - South African socio-economic policy implemented in 1994 to oversee any major advances in dealing with SA’s most severe social problems
Define GEAR
Growth, Employment and Redistribution (GEAR) - focused on privatization and the removal of exchange controls. Objectives are:
Achieving macroeconomic balance in the SA economy, i.e. reduced budget deficit and falling rate of inflation
Make SA’s economy get on a 6% growth path by 2000
Define AsgiSA
The Accelerated and Shared Growth Initiative for South Africa (AsgiSA); objectives were to introduce policies programmes and interventions to allow SA’s economy to grow enough to decrease poverty and unemployment by half between 2004-2014.
