The Meaning of 'An Economy' (2.1)
Lesson Objective: The Meaning of 'An Economy' (2.1)
What do you understand by the word 'economy'? What is an 'economy'?
An economy is the measure of all the resources and wealth in a country - everything produced and purchased within a country.
An economy is the place where business activity happen.
An economy is made of businesses in different sectors (the sectors of an economy):
The primary sector of an economy is based on activities that extract raw materials from nature (land or sea) as for example agriculture or fishing.
The secondary sector is where natural resources are turned into finished goods through manufacturing. Turning the cotton into thread and then into a t-shirt.
Finally, the tertiary sector represents the service sector. This is the sector where hospitals, schools, banks, and transportation companies, for example, operate.
Can you think of other examples in each of the 3 sectors?
It is important that we understand that these 3 separate sectors are interdependent on each other and without one another they would struggle/cease to exist:
Activity 2.2
Economies are also divided into Public and Private sectors:
To-Do-List
Chapter 2 - Economic Sectors
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