Informal And Economic Sectors Flashcards
What is the tertiary sector concerned with?
The sale of goods and services
This includes distribution businesses and entertainment.
What activities take place in the secondary sector?
Manufacturing and construction activities
Examples include car manufacturing and textile production.
What is the primary sector focused on?
The extraction and harvesting of raw materials
This includes activities like farming, mining, and fishing.
What is a characteristic of the primary sector workforce?
Often has low educational levels and is labor-intensive
Emphasis is placed on manual labor.
What is the potential for entrepreneurs in the informal sector?
To grow their businesses enough to become part of the formal sector
This does not happen often.
What role does the informal sector play in the economy?
It contributes indirectly to the GDP
It plays an important role despite not being included in GDP calculations.
What are typical examples of informal sector activities?
Hawking, street vending, and offering services like hair cutting
Examples include selling products at car parks or street corners.
What is a key difference between the formal and informal sectors?
Businesses in the informal sector do not adhere to legal requirements like paying tax
This leads to their exclusion from GDP calculations.
What is the quinary sector’s focus?
High-level decision making and services
This includes sectors like education and healthcare.
Fill in the blank: The economy can be divided into five _______.
sectors
What is a common activity in the quaternary sector?
Knowledge-based services
Examples include research and development.
In what ways is the economy shifting over time?
From primary and secondary sectors to tertiary, quaternary, and quinary sectors
This shift often reflects economic development.
True or False: The informal sector is a major contributor to GDP calculations.
False
The informal sector is not included in GDP calculations.
What are examples of businesses typically found in the informal sector?
Street vendors, hawkers, and home-based businesses
These businesses often operate without fixed premises.
What is a common challenge faced by workers in the informal sector?
Lack of job security and benefits
Workers often operate without legal protections.
Fill in the blank: The secondary sector transforms materials extracted in the _______ sector.
primary
What is a feature of businesses in the tertiary sector?
They operate mainly in the service industry
This includes retail businesses and entertainment services.
