Economic sectors and types of economy Flashcards
What are the three types of businesses
Primary, seconday and tertiary
How can the importance of a sector be measured
Number of jobs in the sector, number of goods produced
3 benefits of increased importance of secondary business
Increase in GDP
More tax revenue
More jobs created
3 problems of increased importance of secondary business
Social problems as many people move to one industrialised area
Whats a problem faced by de-industrialising countries
Competition from other industrialising countries can offer cheaper workforce
What is mixed economy
Economic system combining private and state enterprises, free market with state interventionism
What’s Command economy
Government determines production, investment, prices and incomes.
What’s market economy
Decisions regarding investment, production and distribution are guided by the price signal created by the force of supply and demand.
What’s the definition of an entrepreneur
A person who has an idea, takes risk and organises a business
5 characteristics of entrepreneur
Self confident, determined, motivated, committed, risk taker
List 5 ways where ideas come from
People's skill or hobbies Past experience Desire for certain lifestyle Research they have seen Personal need that can benefit others
3 problems entrepreneurs face
Lack of finance
Location to establish business
Competition of other businesses
3 areas the government can help a business
Finance( tax breaks, grants, special loan)
Location( Provide free and discounted permises, encourage them to go to a place where people need work)
Research
