1.2 Classification of Businesses

Question 1

What are the 3 economic sectors?

Answer 1

• Primary
• Secondary
• Tertiary

Question 2

Define the primary sector

Answer 2

Sector that involves the use/extraction of natural resources (eg. fishing & mining)

Question 3

Define the secondary sector

Answer 3

Sector that involves the manufacture of goods using the resources from the primary sector (eg. auto-mobile manufacturing)

Question 4

Define the tertiary sector

Answer 4

this sector consists of all the services provided in an economy (eg. hotels & banks)

Question 5

Why was the primary sector dominant in the past?

Answer 5

Most people worked in agriculture before industrialization.

Question 6

What caused the secondary sector to grow?

Answer 6

The Industrial Revolution → rise of manufacturing and factories.

Question 7

Why is the tertiary sector most important in developed countries now?

Answer 7

Higher incomes + urban life = more demand for services.

Question 8

What’s happening to the secondary sector in developed countries?

Answer 8

It’s shrinking — called de-industrialization — as services take over.

Question 9

Why is the primary sector still big in developing countries?

Answer 9

Less tech, lower income, more reliance on farming.

Question 10

What are the two ownership sectors?

Answer 10

• Private
• Public

Question 11

What is the private sector?

Answer 11

Sector in which businesses aren’t owned by private individuals, but by the government

Question 12

What is the public sector?

Answer 12

Sector in which business are owned by private individuals and not the government