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9609 · 1.2.1

Economic sectors — practice questions

Practice and worked examples for 9609 Economic sectors. Short previews only — attempt the full question in MarkScheme against the official scheme.

Worked example 1

A car manufacturing company, 'AutoCorp', operates a factory (secondary sector). It sources its steel from a supplier for $800 per tonne. It processes 1,000 tonnes of steel per month into car components, which have a total market value of $1,500,000. Calculate the value added by AutoCorp's factory per month.

Show solution outline

Step 1: Calculate the total cost of raw materials (inputs). Cost of steel = Price per tonne × Number of tonnes Cost of steel = 800×1,000=800 \times 1,000 = 800,000

Step 2: Identify the value of the finished goods (outputs). Market value of components = 1,500,0001,500,000

Step 3: Calculate the value added. Value Added = Value of Outputs - Cost of Inputs Value Added = 1,500,000−1,500,000 - 800,000 = 700,000700,000

Answer: AutoCorp adds $700,000 of value per month. This demonstrates the key function of the secondary sector: transforming raw materials into more valuable products.

Worked example 2

In 2015, the workforce of Country Y was distributed as follows: Primary 25%, Secondary 30%, Tertiary 45%. The total workforce was 40 million. By 2025, the total workforce grew to 45 million, with the secondary sector now employing 11 million people and the tertiary sector employing 25 million. Calculate the number of people employed in the primary sector in 2025 and analyse the structural change that has occurred.

Show solution outline

Step 1: Calculate primary sector employment in 2025. Total workforce = 45 million Primary employment = Total workforce - Secondary employment - Tertiary employment Primary employment = 45,000,000 - 11,000,000 - 25,000,000 = 9,000,000 people.

Step 2: Calculate the percentage share of each sector in 2025. Primary % = (9m / 45m) × 100 = 20% Secondary % = (11m / 45m) × 100 = 24.4% Tertiary % = (25m / 45m) × 100 = 55.6%

Step 3: Analyse the change from 2015 to 2025.

  • Primary Sector: Share fell from 25% to 20%.
  • Secondary Sector: Share fell from 30% to 24.4%. This indicates de-industrialisation in relative terms.
  • Tertiary Sector: Share grew significantly from 45% to 55.6%, becoming the dominant sector.

Conclusion: Country Y is experiencing significant structural change. The decline in the relative importance of both primary and secondary sectors, coupled with strong growth of the tertiary sector, shows a clear shift towards a service-based economy.

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