Levels Economic Activity

Topics: Economics, Marketing, Industry Pages: 4 (1281 words) Published: March 29, 2014
Levels of Economic Activities
There are 3 stages of production
Primary Sector is the one in industry which extracts and uses the natural resources of the Herat Secondary Sector is the one in industry which manufactures goods using the raw materials provided by the primary sector Tertiary Sector is the one in industry which provides services to consumers and the other sectors of industry. The 3 sectors can be compared by the number of workers employed or by the value of output of goods and services. The more developed a country the more significant the tertiary sector is. Public and Private Sectors of Industry

There are 3 main economic system: laissez faire or free market, command or planned economy, and mixed economy Laissez faire or free market has no government control over factors of production. Businesses only provide goods and services if they make a profit as they’re all private. Prices depend on the demand of the goods. Advantages:

Consumers are free to choose what they want to buy
Workers are encouraged to work hardly as they can keep most or all of their incomes because of low or non-existent taxes Businesses compete with each other and this could help low prices New businesses are encouraged to set up in order to make profit Disadvantages:

There are no government provided goods or services available to everybody. Only those who can afford to buy these important services will benefit from them There’s no government planning or control over the economy so there could be many uncontrolled economic booms and recessions. Businesses might be encouraged to create monopolies (a business which controls all of the market for a product) in order to increase prices. Consumers would have a limited choice Command or planned economy doesn’t have a private sector as all resources are owned by the state. The government decides what is being made and who by. Advantages:

Government controls should eliminate any waste resulting from competition between firms...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Economic Activities
  • Economics and Guides Economic Activity Essay
  • ECONOMICS Research Paper
  • Economics Essay
  • economics Essay
  • Economics Essay
  • Economic Activity Research Paper
  • business economics Essay

Become a StudyMode Member

Sign Up - It's Free