THE 3 SECTOR OF PRODUCTION
The primary sector: extraction and production of raw materials
types of industries: farming, mining, fishing, forestry.
The secondary sector processes the raw materials, which are transformed into goods and
products.
types of industries: food and beverage (wheat – bread ), textile (cotton – clothes), car
manufacturing, building, chemical industry
The tertiary sector: provision of services to final consumers and businesses.
types of industries: retailing, banking and insurance, education, police, health services, justice,
advertising
The advance tertiary is the use of high-technology (H.T.) to create services.
TYPES OF ECONOMY
PLANNED ECONOMY
The government or state makes the main decisions about what will be produced, how it will be
produced and in what quantities, at what price it will be sold and who will benefit from the sale of
products or services.
This model still exist in Cuba and Libya.
FREE MARKET ECONOMY
The main decisions about production and prices are established by the economics of supply and
demand.
Consumers choose who to buy from and how much they are willing to pay for a product or a
service.
Examples are USA and Japan.
MIXED ECONOMY
This type of economy combines element of both.
Private companies are free to compete for most goods and services, but the government provides
other services, such as public transport, education and health care.
Examples are Italy, France, Germany and UK.
