Classification of businesses

Sectors of the economy Primary

Businesses which extract natural resources

Secondary Firms that process and manufacture

goods from natural resources

Tertiary Firms that supply a service to

consumers and other businesses

Sectors

Primary

Secondary

Tertiary

Chain of production

Primary

Secondary

Tertiary

Chain of production

Primary

Secondary

Tertiary

Chain of production

Primary

Secondary

Tertiary

Interdependence – each sector relies on the other sectors.

Changes over time ...

Homework What is meant by the term primary

sector? (2)

Identify two businesses that operate in the tertiary sector (2)

Identify and explain two differences between the primary and secondary sectors (6)

Public and private sectors

Private sector – 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 or government

Public vs Private sector

Police vs security guard

Hospitals

Schools

Housing

Changes in sectors of the economyLDC

MDC

Hong Kong

USA

UK

China

Activity 2.4

Q1

Q2

Q3

Q4

Test yourself page 25

Types of economy

Mixed

Planned

Free

Public vs private sector decisions

Test yourself page 26

Q1

Q2

Q3

Q4

Q5