Ch.2- Classification of businesses

Question 1

Primary sector

Answer 1

Firms whose business activity involves the extraction of natural resources

Question 2

Secondary sector

Answer 2

firms that process and manufacture goods from natural resources

Question 3

Tertiary sector

Answer 3

Firms that supply a service to consumers and other businesses

Question 4

Chain of production

Answer 4

The production and supply of goods to the final consumer involves activities from primary, secondary and tertiary sector businesses.

Question 5

Mixed economy

Answer 5

An economy where resources are owned and controlled by both the private and public sectors

Question 6

Private sector

Answer 6

The part of the economy that is owned and controlled by individuals and companies for profit.

Question 7

Public sector

Answer 7

The part of the economy that is controlled by the state or government.