BUSINESS STUDY REVISION IGCSE

the primary sector- extracts and uses the natural resources of the earth. ex. oil, copper, etc 

THE SECONDARY SECTOR- manufactures goods using the raw materials provided by the primary sector- aircrapf making, building....

the tertiary sector- provides services to consumers and the other sectos of industry. 

DE- INDUSTRALISATION

DECLINE IN SECONDARY SECTION.

PUBLIC AND PRIVATE SECTORS OF INDUSTRY

- FREE MARKET ECONOMY

--> no government control over factors of production... also known as MARKET ECONOMY. 

-all resources are owned privately. 

good sides of this 

-consumers are free to choose what they want to buy. 

-workers are encouraged to wotk hards as they can keep mosr or all of their incomes----> low, or non-existent taxes. 

-business compete with each other- this keeps prices low. 

- new businesses are encouraged to open up in order to make profit. 

BAD SIDES OF FREE MARKET ECONOMY -

-no government provided goods/services- only those who can afford will benefit. 

-no GOVERNMENT CONTROL--> uncontrolled BOOMS and recessions!!!

 -monopolies might set up in order to increase prices- consumers would have limited choice. 

COMMAND/PLANNED ECONOMY

a government or a state plans ad controls the use of recources.- might be no private propoerty at all. 

ADVANTAGES +

-government contol should eliinate any waste resulting from competition between firms. 

-there should be work for everybody!!! 

-the needs o popoulation are met, but there is little production…