3. Types of industrial sectors Primary Industry – extractive industry – extracting raw materials e.g. coal, fish Secondary Industry – manufactured and construction industries – processing raw materials into finished goods Tertiary Industry – providing a direct commercial service Direct service – offered direct to the public e.g. hairdressing, police service Commercial service – offered to other businesses e.g. recruitment service Some services can be both direct and commercial. Within the UK there is a high proportion of business in the tertiary sector than the primary and especially the secondary sector.

4. Deindustrialisation A long term reduction in the manufacturing sector. Why is this? Less Government support given to manufacturing Increase in imported products Importance of leisure time – services increase Increase in small businesses – service sector popular for business start ups

5. The chain of production – the process of goods from primary industry through secondary and tertiary industry until the end product reaches the final consumer. Factors of production – the resources needed for the production of goods and services. They include: Land – natural resources I.e. from the earth or ocean e.g. wood, fish Labour – mental and physical effort e.g. employees Capital – money available to invest in the plant and machinery Enterprise – the business idea – brings the other factors of production together. All of these resources are sold to be scarce thus businesses have to decide how to make best use of these resources. There is always an opportunity cost to the decision made. Opportunity cost – the alternative that is scarified when a particular decision is made. For example if you have £25 to spend and you have a choice of a shirt or jumper. If you buy the jumper the opportunity cost is the shirt.

6. Types of Economy All countries operate in an economic system. There are 3 economic systems: Market Economy An economy where there is NO Government intervention. Goods and services are provided in response to demand. Price is decided by supply and demand. The profit motives is very important to businesses. The problem can be that certain products and services may not be provided if they do not generate a profit. No real example, USA is the nearest Planned / Command Economy An economy where all decisions are government. They decide what to produce, how to produce it and in what quantities. All businesses are owned by the government. There can be a shortage of luxury products abd services. E.g. Cuba Mixed Economy An economy where there is government (public) and private organisations operating together. Most economies are mixed economies but the production of that mix does vary. E.g. UK, France, Germany e.t.c.

7. Private and Public Sector Within the UK organisations can operate in the public and / or private sector. That is why we have a mixed economy. Private sectorPublic sector Sole traderNationalised industries partnershipCentral Government Limited companies – Plc and Ltd Local Government Franchises Co-operatives All of these organisations operate in a market.

8. Market Where buyers and sellers come together to exchange goods and services for a price. Types of market – these buy and sell the following: Consumer durable – long lasting goods e.g. washing machines Consumer non durable – goods consumed quickly e.g. food, clothes Industrial – goods and services to other businesses Labour – the use of people skills Capital - money

9. Questions 1. Carlton Press Ltd is a small publishing company specialising in educational books. The diagram shows the typical stages of production and distribution of one of its books. The stages in producing and distributing a book Timber felling Paper making Printing company Warehouse BookshopsSchools

10. There are three kinds of business activity involved in the production and distribution of the books – primary, secondary and tertiary. Describe each kind of business activity and give an example. Kind of business activityDescriptionExample Primary Secondary Tertiary (9)

11. 2.The table below shows the values of output and levels of employment for the secondary and tertiary sector in town of Woolford during the period 1988 to 1994. YearOutput £mSecondary sector employment Tertiary sector employment Total employment 1988180028 50046 50075 000 1989183628 86049 140 1990187629 52052 48082 000 1991184827 15050 85078 000 1992182025 16048 84074 000 1993183624 75050 25075 000 1994184424 32051 68076 000

12. (i)How many people were employed in the secondary sector in 1988? (1) (ii)What was the total number of people employed in the town of Woolford in 1989? Show your working. (2) (iii)During the period 1990 to 1992 what happened to: The value of output? (2) The total level of employment? (2) (iv)Using the figure in the table, describe what happened between 1990 and 1994 to each of the following: Employment in the secondary sector: (2) Employment in the tertiary sector: (2)

13. (b)Suzanne Hart had worked for Tastybread Bakeries ltd. In Woolford for eight years. She worked as a baker and later moved into the marketing department where she worked for three years before being made redundant. (i)What is meant by ‘being made redundant’? (2) (ii)Give TWO reasons why Suzanne may have been made redundant. (2) (c)After being unemployed for some time, Suzanne decided to start her own bakery, ‘Aunt Sue’s’, selling braed and confectionery from a small shop. (i) How might her experience with Tastybread Bakeries Ltd. Help her to start the new bakery? (4)

14. 3.Give one example of a business activity in each of the following sectors. (3) SectorExample Primary Secondary Tertiary

15. Value of Output by Sector Economy of Bowton 1968 - 1998 Output (£m at 1968 prices) (b)The graph below shows the values of output by sector in 1968 and 1998 in the economy of the town of Bowton.

16. (i)Describe the main changes that have taken place. (4) (ii)What are the reasons for the changes in the tertiary sector? (4) (c)The table below shows the levels of employment by sector, in 1968 and 1998, in the economy of the town of Bowton. Working Population – by sector Economy of Bowton 19681998 Primary sector1 000500 Secondary sector9 0004 000 Tertiary sector10 00016 000

17. (i)Describe the main changes in the levels of employment by sector that have taken place between 1968 and 1998. (4) (ii)Explain, why the changes in employment in the secondary sector may have occurred. (4) (iii)Are the changes in employment that have taken place a problem for the people of Bowton? Give reasons for your answer. (8)