2. Classification of Businesses

Question 0

Why is de-industrialisation?

Answer 0

When there’s a decline in important of secondary sector in a country

Question 1

What re the three stages of economic activity?

Answer 1

Primary, Secondary and Tertiary

Question 2

Why does the relative importance of the three business sector change? (3)

Answer 2

• Resources depleted
• Competitiveness in manufacturing lost
• More people spend on services because of higher income

Question 3

What is a mixed economy?

Answer 3

Economy with both private and public sector

Question 4

What’s the difference between private and public sector?

Answer 4

Public sector is owned by the government, the private sector is not. The objective is also usually different.