UNIT 1 - Chap 2: Classification of businesses Flashcards
What is the definition of primary sector?
The primary sector of industry extracts and uses the natural resources of Earth to produce raw materials used by other businesses.
What is the definition of secondary sector?
The secondary sector of industry manufactures goods using the raw materials provided by the primary sector.
What is the definition of tertiary sector?
The tertiary sector of industry provides services to consumers and the other sectors of industry.
What is the definition of De-industrialisation?
De-industrialisation occurs when there is a decline in the importance of the secondary, manufacturing sector of industry in a country.
What is the definition of mixed economy?
A mixed economy has both a private sector and a public (state) sector.
What is the definition of Capital?
Capital is the money invested into a business by the owners.
Examples of a primary sector? (3)
Farming
Fishing
Forestry
Examples of a secondary sector? (3)
Car manufacturing
Textile production
Footwear production
Examples of a tertiary sector? (3)
Hair Salons
IT services
Retail
What is a private sector?(3)
Businesses owned by private individuals and not by the government. They also decide on the price to charge for the good/service. Private sector business’ main aim is profit.
What is a public sector?
Government of a state owned and controlled businesses and organization. The money for these come from taxpayers. Objective of public sector businesses is to provide welfare to its people in the economy.
Usually the three sectors of the economy are compared by what 2 things? (2)
- percentage of the country’s total number of workers employed in each sector
- value of output of goods and services and the proportion this is of total national output.
