Economic Sectors

DO NOW  Define what is meant by triple bottom line and provide a NZ example of a social enterprise.

Economic Sectors NZ Economy  What are the three economic sectors?  Why are they important to the NZ Economy?  What do you think is the current mix within our economy?

Business Activity  Primary Sector: Businesses engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed by other businesses.  Secondary Sector: Businesses that manufacture and process products from natural resources, including computers, brewing, baking, clothes manufacturing and construction.

Business Activity  Tertiary Sector: Firms that provide services to consumers and other businesses, such as retail, transport, insurance, banking, hotels, tourism and telecommunications.

Changes in Business Activity  The importance of each sector changes overtime, this is because of industrialisation a reliance on the secondary sector manufacturing businesses. Countries such as China rely on this sector.  The situation is reversed in more developed countries such as NZ and USA the secondary sector becomes less important and the tertiary sector more important.

Businesses in NZ

 470,350 enterprises, down 1.7 percent compared with February 2009  43,700 enterprise births over the year, down 20.4 percent from the previous year  55,040 enterprises ceased over the year, up 6.0 percent from the previous year  a total of million paid employees (a business size measure statistic, not an official  employment statistic), down 1.9 percent from 2009  one-fifth of all enterprises were in the rental, hiring, and real estate services industry  the manufacturing industry was the largest employer (227,300 employees)  the new Auckland Council region that comes into existence on 1 November 2010 had an  estimated 31 percent of the business locations in New Zealand.

Group Work  In Groups of 4-5 discuss the statistics information in relation to NZ enterprises and decide what sector is the most important to our economy and why?  Also think back to the 1950’s what do you think would have been the biggest economic sector for our country? (15 mins)

Public vs. Private Video  y66c y66c y66c

Public Vs Private  Public Sector – all businesses owned and controlled by the government. eg – Education, Hospitals and police  Private Sector – all businesses owned and controlled by private individuals.

100% Private or 100% Public  Do you think economy's should be 100% Private or Public or should they be mixed?

Reasons for a Mixed economy  Merit Goods. The government feels everyone should have access to some goods/services e.g. healthcare and education. If these existed only in the private sector not everyone could afford them, so not everyone would have access to them.  Public Goods. These goods or services are: a) Non-rival i.e. once one consumer has benefited from them, they remain undiminished for other consumers to benefit from e.g. a road. a) Non-rival i.e. once one consumer has benefited from them, they remain undiminished for other consumers to benefit from e.g. a road. b) Non-excludable i.e. once provided it is very difficult to prevent any consumer from benefiting from them e.g. a fireworks display It is difficult/impossible to make money from public goods as we cannot exclude consumers who haven’t paid for them (freeloaders) so the private sector is usually unwilling to provide them.

Homework  Case Study pg 17  Blog Duty –Student to discuss today's lesson, others to check and comment