Module 1 unit 4

Page 1: Introduction to the Economy

• Definition of Economy:

  • An economy comprises all individuals engaged in diverse economic activities within a community or country.

  • Activities include:

    • Work

    • Buying

    • Selling

    • Manufacturing

    • Paying taxes

• Economic Sectors:

  • Everyone working belongs to one of the three economic sectors.

Page 2: The Industrial Column

• Definition:

  • The industrial column represents the progression of a product from raw extraction to its final consumer-ready form.

• Components:

  • Encompasses all processes and transactions along this route.

Page 3: Processing Route of Products

• Chain of Production:

  • The journey of raw natural resources involves:

    • Primary Sector: Exploitation of resources.

    • Secondary Sector: Processing of goods.

    • Tertiary Sector: Distribution to consumers via enterprises.

Page 4: Role of Economic Sectors

• Health Indicator of Economy:

  • The workforce distribution among sectors indicates economic health.

• Trends:

  • Stronger economies show a higher concentration of workers in the tertiary sector compared to primary or secondary sectors.

Page 5: Primary Sector

• Definition:

  • The primary sector focuses on the growth and collection of raw materials.

• Impact of Technology:

  • Mechanization in farming reduces the labor force needed to produce food, allowing workers to transfer to other employment avenues.

Page 6: Secondary Sector

• Definition:

  • The secondary sector involves the manufacturing of goods.

• Relation to Primary Sector:

  • Utilizes resources from the primary sector (e.g., iron ore converted to steel).

• Technological Influence:

  • Manufacturing employing machines frees workers for service-oriented roles.

Page 7: Tertiary Sector

• Definition:

  • The tertiary sector focuses on providing services rather than goods.

• Payment Methods:

  • Services are paid for directly or through tax contributions.

• Public Services:

  • Encompasses government-provided services such as healthcare and education.

Page 8: Economic Growth

• Definition:

  • Economic growth is the effective functioning of all sectors, resulting in increased production of goods and services.

• Measurement:

  • Growth is reflected in an increase in Gross Domestic Product (GDP).

Page 9: Economic Development

• Definition:

  • Economic development represents a sustainable enhancement of the general standard of living.

• Key Differences:

  • Growth does not equal development; it can occur without distribution enhancements.

  • Development promotes equitable wealth sharing, increases educational opportunities, and leads to better-paid job prospects.

• Cycle of Improvement:

  • More income encourages spending, which fuels business growth and job creation.

Page 10: Features of Economic Development

• Characteristics:

  • Enhanced standard of living: Access to goods and services meeting basic needs.

  • Improved quality of life: Availability of quality healthcare and education for everyone.

  • More equitable wealth distribution: Reduction in poverty levels.