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Primary Industry...... Raw materials and natural resources are extracted

  1. First stage of production Process
  2. Extraction of natural resources 
  • mining 
  • fishing
  • forestry 
  • agricultural

   3. Renewable vs Non-renewable 
Secondary Industry..... Output from primary is processed into manufactured goods

  1. Second stage of production
  2. products from primary stages are processed into manufactured goods
  • consumer goods
  • Producer goods 

A consumer good is one purchased and used by consumers: socks, home toaster or a pair of pants A Producer good is one used by producers: factory machinery, and office desk, etc.
Tertiary Sector...... Production of service rather than goods

  1. Production/Provision of services rather than goods
  2. Can assist the first 2 stages of production
  3. Can help the public or state
  4. Services to industry 
  • Banking 
  • Insurance
  • Spy

   5. Service to the public

  • Hairdressing 
  • Leisure facilities

   6. Service to the state

  • Education
  • Health


Chains of Production
Cotton -----> Shirt -----> Hollister  Trees -----> Paper -------> Page One corn ---> popcorn ---> Movie Theater
Relationship to Development

  1. As and economy/ country develops, more of the workforce migrates to the higher sector 
  2. In china there has been a steady migration of workers from agriculture to manufacturing
  3. As all the factories moved from Hong Kong to China there has been a transition to services economy 


1. Sign Writing- A sign that provides a service: Zara 50% off  Wants

  1. Something that is necessary for our survival
  • Oxygen
  • Food
  • Water
  • Clothing
  • Shelters

Needs

  1. Something that is not necessary but could help improve our lives 
  • Games
  • Books
  • Air-conditioning 
  • TV
  • Xbox 360

   2.Business's are set up to satisfy our needs by providing physical goods (Manufacturing e.eg juice) and services. When you visit a restaurant, you receive the product(food,drink) and you also receive a service from the waiter.
Adding Value 

  1. To make their products more attractive, so that it will increase the profit
  2. For Example  a normal orange juice handmade is  usually cheaper, but in a restaurant they might only use 3 oranges, 10 cents each. But then sells it in a tall glass at $1 which means the Value has been added.

Factors Of Production 

  1. land, labor, Capital and enterprise
  2. Land Represents all natural resources such as gold, timber
  3. Labor is all human resources 
  4. Capital is all the tools and machinery used to produce the good or the service
  5. Enterprise Brings all the previous resources for production e.g. School, bakery...


Scarcity  

  1. Sacrificing something for another thing
  2. If we turn a space of green land into a car park, we loose all the green space
  3. Business make these kinds of choices all the time. Farmers make choices about when and how to improve their land. They sometimes make choices about who to sell their produce to (e.g. at a local market or an agent of a food company) 

What is an entrepreneur? 

  • Risk Taker
  • Confident
  • Positive
  • ignores negative feedback
  • Caring towards employees 

What is an Opportunity cost ? the loss of other alternatives when one alternative is chosen or the loss of other choices when one option is chosen
What is Risk and Reward ? Risk and reward are related factors in the business world. Any

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