Unit 1: Chapter 2 Flashcards
Classification of Businesses
What are the 3 economic sectors?
primary, secondary and tertiary
What is the primary sector?
businesses that use natural resources to produce their goods
What is the secondary sector?
businesses that are involved in manufacturing of products
What is the tertiary sector?
businesses that provide services to the general population
Which sector are most developing countries in?
the primary sector
eg. farming with their natural resources
Which sector and most developed countries in?
secondary and tertiary sector
eg. manufacturing and leisure
What is deindustrialisation?
a decline in importance of the secondary sector in a country
What are the types of economies?
planned economy, free market economy, mixed economy
What is a planned economy?
a type of economy where investment, prices and incomes are all decided by the government
What is a free market economy?
economic system based on competition with little inference from the government
What is a mixed economy?
an economic system combining private and public sectors
What is the private sector?
businesses owned by individuals that are profit driven and have no correlation to the government
What is the public sector?
businesses owned by the government and are a service to the country
