Econ U1 - Sectors,function of money , specialisation

What are the sectors of an economy? What are they responsible for?

Primary (Extracts)

Secondary ( manufactures )

Tertiary (provide goods and services)

Capital goods

Goods used in production process to manufacture goods that will be consumed later

Consumer goods

Directly consumed to satisfy wants / needs

Function of money

1) Measure of value

2) Store of value

3) Medium for exchange

4) Method of deferred payment

Barter vs Money ( What do they require?)

Barter:

double coincidence of wants

Discourages specialisation

Money:

No need

Encourages specialisation

Specialisation

Production of a limited range of goods and services by an individual, firms or government

Division of labour

Production process broken into separate parts

Each work focuses on one part