gcse economics - types of production
The factors of production are combined to make goods and services. Choices have to be made over what to produce and how to produce.
The value of total production in an economy is known as TOTAL OUTPUT.
Types of Industry
(1) PRIMARY INDUSTRY
Industry that extracts raw materials from the earth, such as coal, fish and wheat. Raw materials are mined, collected, grown or cut down.
Examples coal mining, agriculture, oil extraction
(2) SECONDARY INDUSTRY
Industry that processes primary products into manufactured goods.
Examples car production, making tables
(3) TERTIARY INDUSTRY
Businesses that provide a service, either to individuals or to other businesses
Examples hairdressing, banking or solicitors
This refers to the change in the balance of the economy between the output of different types of industry.
In the UK and other advanced economies there is NOW LESS PRIMARY INDUSTRY and MORE TERTIARY INDUSTRY
The UK has experienced the loss or decline of a number of established industries e.g. shipbuilding, mining
These have been replaced by a growth in the service sector e.g. leisure
facilities, retail. People generally have more TIME and DISPOSABLE INCOME
to spend on these options.
A Which is the fastest growing sector (primary, secondary or tertiary) at present in the UK and why?
B Which types of industry are the following:
b) copper mining
e) financial services
These GCSE Economics revision notes have been kindly provided by Peter Davies of Mill Hill School, Ripley
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