1.2

• Primary sector: this involves the use/extraction of natural resources. Examples include agricultural activities, mining, fishing, wood-cutting, oil drilling etc.
• Secondary sector: this involves the manufacture of goodsusing the resources from the primary sector. Examples include auto-mobile manufacturing, steel industries, cloth production etc.
• Tertiary sector: this consist of all the services provided in an economy. This includes hotels, travel agencies, hair salons, banks etc.
• Primary sector was the largest sector in the world, as agriculture was the main profession


  Mid 18th century
• After the industrial revolution

  More countries began to become more industrialized and urban, leading to a rapid increase in the manufacturing sector (industrialization)
• As countries are becoming more developed

  The importance of tertiary sector is increasing, while the primary sector is diminishing
• The secondary sector is also slightly reducing in size (de-industrialization)


  Compared to the growth of the tertiary sector
• Tertiary sector growth

  Due to the growing incomes of consumers which raises their demand for more services like travel, hotels etc.
• Private sector: where private individuals own and run business ventures. Their aim is to make a profit, and all costs and risks of the business is undertaken by the individual.
• Public sector: where the government owns and runs business ventures. Their aim is to provide essential public goods and services (schools, hospitals, police etc.) in order to increase the welfare of their citizens, they don’t work to earn a profit. It is funded by the taxpaying citizens’ money, so they work in the interest of these citizens to provide them with services.
• In a mixed economy, both the public and private sector exists.