The document classifies businesses into three sectors: primary sector which extracts natural resources, secondary sector which processes and manufactures goods from natural resources, and tertiary sector which supplies services to consumers and other businesses. These sectors are interdependent and have changed over time, with less developed countries typically having a larger primary sector and more developed countries having larger secondary and tertiary sectors. The public sector is controlled by the state or government, while the private sector is owned and controlled by individuals and companies for profit.

1. Classification of businesses

3. 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

4. Sectors

Primary

Secondary

Tertiary

5. Chain of production

Primary

Secondary

Tertiary

6. Chain of production

Primary

Secondary

Tertiary

7. Chain of production

Primary

Secondary

Tertiary

8. 
Interdependence – each sector
relies on the other sectors.

9. Changes over time ...

10. 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)

11. 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

12. Public vs Private sector
Police vs security guard
Hospitals
Schools
Housing

13. Changes in sectors of the economy
LDC
MDC
Hong Kong
USA
UK
China

14. Activity 2.4
Q1
Q2
Q3
Q4

15. Test yourself page 25

16. Types of economy
Mixed
Planned
Free
Public vs private sector decisions

17. Test yourself page 26
Q1
Q2
Q3
Q4
Q5