Sectoral Balance

Question 1

What are the sectors of an economy

Answer 1

Primary - extractive industries e.g. mining, fishing, agriculture
Secondary - manufacturing products/transforming raw materials into goods
Tertiary - services e.g. transport, financial, personal, education

Question 2

Describe stage 1 (primary dominance) of an economy

Answer 2

Countries are agrarian —> produce food
Technological development occurs —> new products and processes are applied in agriculture
Demand for agricultural machinery rises —> secondary sector develops
Income, living standards and aspirations increase
Population have more income + leisure time —> demand for consumer goods rises

Question 3

Describe stage 2 (secondary dominance) of an economy

Answer 3

Rural workforce —> move into secondary industry (urbanisation)
Products of secondary sector traded
Secondary industry mainly builds capital stock through production of capital goods
Demand for consumer goods increase —> using capital stock producers switch to production from producer to consumer goods
Higher leisure time increase demand for services

Question 4

Describe stage 3 (tertiary dominance) of an economy

Answer 4

Incomes rise further
More services are offered
Countries can afford more education giving the country a comparative advantage in the tertiary sector