Business Studies Chapter 2

Primary sector

The sector of the economy that involves the extraction and harvesting of natural resources, such as agriculture, mining, forestry, and fishing.

Secondary Sector

The sector of the economy focused on manufacturing and processing raw materials into finished goods.

Tertiary Sector

The sector of the economy that provides services rather than goods, including retail, entertainment, healthcare, and education.

Chain of Production

The complete process of producing goods, from the extraction of raw materials to the manufacturing and distribution of finished products.

Mixed Economy

An economic system that combines elements of both capitalism and socialism, featuring both private and public enterprise.

Private Sector

The part of the economy that is owned and operated by individuals or companies, rather than the government. It focuses on profit-making and includes businesses and organizations. It plays a crucial role in job creation and economic growth.

Public Sector

The portion of the economy that is controlled by the government and provides services to the public. It includes government agencies, public schools, and state-owned enterprises, focusing on public welfare rather than profit.