Chapter 2 - Classification of Businesses

Question 1

what is meant by the primary sector?

Answer 1

firms whose business activity involves the extraction of natural resources

Question 2

what is meant by the secondary sector?

Answer 2

firms that process and manufacture goods from natural resources

Question 3

what is meant by the tertiary sector?

Answer 3

firms that supply a service to consumers and other businesses

Question 4

what is meant by the 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

what is a mixed economy?

Answer 5

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

Question 6

what is meant by the private sector?

Answer 6

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

Question 7

what is meant by the public sector?

Answer 7

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