1.2

• Primary sector

  Extracts natural resources and produces raw materials (crude oil, iron ore, forestry, agriculture, fishing).
• Secondary sector

  Manufactures finished or part finished goods using the raw materials provided by primary sector.
• Tertiary sector

  Provides services to consumers and to other sectors of industry.
• The importance of the primary, secondary and tertiary sector depends on...

  The % of total workers employed in each sector. The value of output of products as a proportion of total national output.
• Reasons for changing importance of three sectors

  Primary resources become depleted. Loosing competitiveness in manufacturing to newly industrialized countries (e.g. China). As living standards rise consumers tend to spend more on services than manufactured products.
• Capital

  Money invested in the business by owners.
• De-industrialization

  When there's a decline in the importance of the secondary sector of industry in an economy.
• Mixed economy

  An economy with both private and public sector activity.
• Public sector

  Goverment or state owned/controlled businesses. Government or public authority make decisions on: What to produce, Price of it, Some goods or services, are free or charge (eg. State health), The money for this comes from the tax payer
• Private sector

  Businesses not owned by the government. Most businesses will answer the economic questions with an aim of making a profit.
• Which businesses does the government control?

  Health, Education, Public tranport, Water supply, Electricity supply
• Privatisation

  Selling some public sector companies to private sector investors. Private businesses may be run more efficiently and private sector owners might invest more capital than the government can afford.
• Interdependence

  Businesses in each of the three sectors are likely to rely on each other (e.g. the primary and secondary sectors rely on the tertiary sector for financial services).