Lesson 2 - Classification of Businesses

Question 1

Define the Primary Sector

Answer 1

This involves extraction of natural resources from the earth to produce raw materials used by other businesses.

Question 2

Define the secondary sector

Answer 2

This involves the manufacture of goods using the resources from the primary sector.

Question 3

Define the Tertiary Sector

Answer 3

This consists of all the services provided in an economy.

Question 4

Define De-Industralisation

Answer 4

De-Industralisation occurs when there is a decline in the importance of the secondary, manufacturing sector of industry in a country.

Question 5

Define a Mixed Economy

Answer 5

A mixed economy has both a private sector and a public sector.

Question 6

Define Capital

Answer 6

Capital is the money invested into a business by the owners.

Question 7

Define Private sector

Answer 7

Private sector are business owned by individuals. These Businesses will decide what to produce and how to produce it.

Question 8

Define Public Sector

Answer 8

Businesses owned by the government. The government will decide what to produce and how to produce it.