Chapter 2

• Primary sector: firms who's business activity involves the extraction of natural resources.
• Secondary sector: firms that process and manufacture goods from natural resources.
• Tertiary sector: firms that supply a service to consumers and other businesses.
• Chain of production: The production and supply of goods to the final consumer involves activities from primary, secondary and tertiary sector businesses.
• Mixed economy: an economy where the resources are owned and controlled by both the private and public sector.
• Private sector: the part of the economy that is owned and controlled by individuals and companies for profit.
• Public sector: The part of the economy that is controlled by the state.