9609 · 1.2.1
Economic sectors flashcards
Revision flashcards for Cambridge 9609 Economic sectors (syllabus 1.2.1). Flip, recall, then mark a real past-paper question.
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Primary sector example?
Wheat farm, oil extraction, commercial fishing.
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Secondary sector example?
Car factory, house builder, food processor.
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Tertiary sector example?
Supermarket, airline, hotel, school.
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Quaternary sector?
Software R&D, university research, data analytics.
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Sectoral shift?
Developed economies: declining primary/secondary share, rising tertiary/quaternary.
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Why shift occurs?
Higher incomes demand services; automation reduces manufacturing jobs.
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Link to 9.1.1?
Manufacturing may relocate to lower-cost countries.
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Multi-sector firm?
Vertical integration spans sectors — e.g. oil firm extracts and refines.
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What is the Quaternary sector?
A sub-sector of the tertiary industry focused on knowledge-based and information-based services. Examples include Research & Development (R&D), information technology (IT), and consultancy.
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Define de-industrialisation.
The decline in the relative importance of the secondary (manufacturing) sector in a country's economy in terms of employment and contribution to GDP.
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What is structural change in an economy?
The long-term shift in the relative importance and contribution of each economic sector (primary, secondary, tertiary) to a country's GDP and employment.
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How does the secondary sector add value?
By taking raw materials from the primary sector and transforming them through manufacturing and construction processes into finished goods with a higher market value.
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What is a key risk for businesses in the primary sector?
Volatility in global commodity prices, which can dramatically affect revenues and profitability. Other risks include weather events and resource depletion.
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What is 'value added'?
The difference between the price of the finished product/service and the cost of the inputs (materials, components) used to produce it. Manufacturing (secondary sector) typically adds significant value.
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What are the social impacts of de-industrialisation?
Structural unemployment in former industrial areas, need for worker retraining, regional economic decline, and potential social unrest.
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How is a sector's contribution to GDP calculated?
It is the total value added by all businesses in that sector. For example, for the secondary sector, it's the market value of finished goods minus the cost of raw materials.