1.2.1 Business activity in terms of primary, secondary and tertiary sectors: Flashcards
• Basis of business classification, e.g. by using examples • Reasons for the changing importance of business classification, e.g. in developed and developing economies (17 cards)
Primary Sector
Involves using natural resources or raw materials (e.g., farming, fishing, mining).
Secondary Sector
Involves manufacturing or processing goods from raw materials (e.g., car factories, food production).
Tertiary Sector
Involves providing services to consumers and businesses (e.g., retail, banking, education, transport).
De-industrialisation
The decline in the importance of the secondary sector in a country’s economy, often as the tertiary sector grows.
Mixed Economy
An economy where both the private sector and public (government) sector play a role in producing goods and services.
Private Sector
Businesses owned and run by individuals or groups for profit (e.g., Apple, McDonald’s).
Public Sector
Organisations owned and operated by the government, often providing essential services (e.g., police, public hospitals).
What is the main activity of a business in the primary sector?
Extracting or using natural resources, such as farming or mining.
Give two examples of secondary sector businesses.
A car manufacturer, a furniture maker.
Why is the tertiary sector becoming more important in many developed countries?
Increased incomes, better education, and more demand for services such as healthcare, education, and entertainment.
What is meant by de-industrialisation?
When the importance of manufacturing (secondary sector) declines and the economy shifts towards services (tertiary sector).
Explain the difference between the private sector and the public sector.
The private sector is made up of businesses owned by individuals for profit, while the public sector includes services run by the government for public benefit.
Which sector would a supermarket belong to and why?
Tertiary sector – because it provides a service by selling goods to consumers.
Give one reason why the primary sector might decline in importance in a developed economy.
Due to automation, outsourcing to countries with cheaper labour, or depletion of natural resources.
What is a mixed economy? Give an example.
An economy where both private businesses and government organisations exist. Example: the UK.
Private Sector
Businesses owned and run by individuals or groups for profit (e.g., Apple, McDonald’s).
Public Sector
Organisations owned and operated by the government, often providing essential services (e.g., police, public hospitals).
