Summary Structure of the Economy Geography 12 IEB

Structure of the Economy

Economic Sectors
Economic activities : The production & distribution of commodities
: Contribute to Gross Domestic Product (GDP) of all countries are classified into 4
distinct sectors according to types of inputs required & types goods/services
produced
: Four Sectors - primary, secondary, tertiary & quaternary sectors


Primary Sector
Description
- Extracts (exploits) natural resources, include basic food & raw materials
- Start production cycle
- Mainly located rural areas
- Harvested, collected or extracted directly from earth or oceans
- Subsistence farming is primary activity although money not earned


Examples
- Agriculture (farming)
- Forestry
- Fishing
- Hunting
- Mining
- Quarrying (form of surface/ stone mining used for building & road-making)
- Subsistence farming


Secondary Sector
Description
- Processing primary raw materials finished products required by consumer
- Manufacturing process
- Add use & value to raw materials
- Commercial purposes
- Located urban areas
- Required access to transportation facilities. Semi-skilled & skilled labour required
- Large workforce (factory workers / manual labour)

, Examples
- Metalwork-iron & steel
- Wineries
- Fish canning
- Food processing
- Pulp & paper industries
- Textile production
- Chemical industries
- Building & construction & power production included


Tertiary Sector
Description
- Also known service industry
- Sector sells goods produced by secondary sector & provides commercial services to both general
population & businesses in al economic sectors
- All services to community
- Handle personal & business services
- Perform exchange function advanced economies
- Concentrated urban areas
- Semi-skilled & skilled workers


Examples
- Human services : health, education, tourism, leisure entertainment, local government, police &
military
- Physical services : banking, financial services, libraries, retail, wholesale, transportation of goods,
public transportation & garbage removal
- Electricity supply & water in sector


Quaternary Sector
Description
- Involves intellectual services, computer & information technology
- Advanced services
- More specialised knowledge
- Technical skills, information, communication skills
- Usually professional & office workers
- Technology enables free choice of location with labour costs


Examples
- Telemarketing
- Call centres
- Data processing
- Dissemination of information
- Consultation, Environmental management, Research on research conservation in sector