Types of industrial sectors• Primary Industry – extractive industry – extracting raw materials e.g. coal, fish

• Secondary Industry – manufactured and construction industries – processing raw materials into finished goods

• Tertiary Industry – providing a direct commercial service

• Direct service – offered direct to the public e.g. hairdressing, police service

• Commercial service – offered to other businesses e.g. recruitment service

Some services can be both direct and commercial.

Within the UK there is a high proportion of business in the tertiary sector than the primary and especially the secondary sector.

Deindustrialisation Deindustrialisation

A long term reduction in the manufacturing sector.

Why is this?

• Less Government support given to manufacturing

• Increase in imported products

• Importance of leisure time – services increase

• Increase in small businesses – service sector popular for business start ups

The chain of production – the process of goods from primary industry through secondary and tertiary industry until the end product reaches the final consumer.

Factors of production – the resources needed for the production of goods and services.

They include:

•Land – natural resources I.e. from the earth or ocean e.g. wood, fish

•Labour – mental and physical effort e.g. employees

•Capital – money available to invest in the plant and machinery

•Enterprise – the business idea – brings the other factors of production together.

All of these resources are sold to be scarce thus businesses have to decide how to make best use of these resources.

There is always an opportunity cost to the decision made.

Opportunity cost – the alternative that is scarified when a particular decision is made. For example if you have £25 to spend and you have a choice of a shirt or jumper. If you buy the jumper the opportunity cost is the shirt.

Types of EconomyAll countries operate in an economic system. There are 3 economic systems:

•Market Economy

An economy where there is NO Government intervention. Goods and services are provided in response to demand. Price is decided by supply and demand. The profit motives is very important to businesses. The problem can be that certain products and services may not be provided if they do not generate a profit. No real example, USA is the nearest

•Planned / Command Economy

An economy where all decisions are government. They decide what to produce, how to produce it and in what quantities. All businesses are owned by the government. There can be a shortage of luxury products abd services. E.g. Cuba

•Mixed Economy

An economy where there is government (public) and private organisations operating together. Most economies are mixed economies but the production of that mix does vary. E.g. UK, France, Germany e.t.c.

Private and Public SectorWithin the UK organisations can operate in the public and / or private sector. That is why we have a mixed economy.

Private sector Public sector

Sole trader Nationalised industries

partnership Central Government

Limited companies – Plc and Ltd

Local Government

Franchises

Co-operatives

All of these organisations operate in a market.

Market Where buyers and sellers come together to exchange goods and services for a price.

Types of market – these buy and sell the following:

•Consumer durable – long lasting goods e.g. washing machines

•Consumer non durable – goods consumed quickly e.g. food, clothes

•Industrial – goods and services to other businesses

•Labour – the use of people skills

•Capital - money

Questions 1. Carlton Press Ltd is a small publishing company specialising in

educational books. The diagram shows the typical stages of production and distribution of one of its books.

The stages in producing and distributing a book

Timber felling

Paper making

Printing company

Warehouse

Bookshops Schools

There are three kinds of business activity involved in the production and distribution of the books – primary, secondary and tertiary.

Describe each kind of business activity and give an example.

Kind of business activity Description Example

Primary

Secondary

Tertiary

(9)

2. The table below shows the values of output and levels of employment for the secondary and tertiary sector in town of Woolford during the period 1988 to 1994.

Year Output £m Secondary sector

employment

Tertiary sector

employment

Total employment

1988 1800 28 500 46 500 75 000

1989 1836 28 860 49 140

1990 1876 29 520 52 480 82 000

1991 1848 27 150 50 850 78 000

1992 1820 25 160 48 840 74 000

1993 1836 24 750 50 250 75 000

1994 1844 24 320 51 680 76 000

(i) How many people were employed in the secondary sector in 1988? (1)

(ii) What was the total number of people employed in the town of Woolford in 1989? Show your working. (2)

(iii) During the period 1990 to 1992 what happened to:

The value of output? (2)

The total level of employment? (2)

(iv) Using the figure in the table, describe what happened between 1990 and 1994 to each of the following:

Employment in the secondary sector: (2)

Employment in the tertiary sector: (2)

(b) Suzanne Hart had worked for Tastybread Bakeries ltd. In Woolford for eight years. She worked as a baker and later moved into the marketing department where she worked for three years before being made redundant.

(i) What is meant by ‘being made redundant’? (2)

(ii) Give TWO reasons why Suzanne may have been made redundant. (2)

(c) After being unemployed for some time, Suzanne decided to start her own bakery, ‘Aunt Sue’s’, selling braed and confectionery from a small shop.

(i) How might her experience with Tastybread Bakeries Ltd. Help her to start the new bakery? (4)

3. Give one example of a business activity in each of the following sectors. (3)

Sector Example

Primary

Secondary

Tertiary

Value of Output by Sector Economy of Bowton 1968 - 1998

020406080

100120140160180200

primarysector

secondarysector

tertiarysector

19681998

Out

put (

£m a

t 196

8 pr

ices

)

(b) The graph below shows the values of output by sector in 1968 and 1998 in the economy of the town of Bowton.

(i) Describe the main changes that have taken place. (4)

(ii) What are the reasons for the changes in the tertiary sector? (4)

(c) The table below shows the levels of employment by sector, in 1968 and 1998, in the economy of the town of Bowton.

Working Population – by sector Economy of Bowton

1968 1998

Primary sector 1 000 500

Secondary sector 9 000 4 000

Tertiary sector 10 000 16 000

(i) Describe the main changes in the levels of employment by sector that have taken place between 1968 and 1998. (4)

(ii) Explain, why the changes in employment in the secondary sector may have occurred. (4)

(iii) Are the changes in employment that have taken place a problem for the people of Bowton? Give reasons for your answer. (8)