The economy!
The economy is big and complex. In this review, we will focus on the three sectors of the economy and go over what each sector consists of.
What is an economy?
An economy is a system where raw materials are transformed into goods and services to match people's needs and wants! The economy determines how goods and services are made and distributed.
The economy is split into three sectors, the primary sector, the secondary sector, and the tertiary sector. The primary sector provides the raw materials we need from nature to manufacture products. The secondary sector processes these raw materials to make them into goods. The third sector of the economy consists of services.
You might be wondering now, what is a raw material, well a raw material is anything we get straight from nature!
can you give three examples of raw materials?
1. _________________
2. _________________
3. _________________
Some examples are coal, steel, wood, and wheat!
Agriculture is part of the primary sector. Fishing, mining, and forestry are also parts of the primary sector.
Can you think of other examples of parts of the primary sector?
The secondary sector converts raw materials into manufactured goods. Some industries produce consumer goods and some produce intermediate goods. Intermediate goods are goods produced to be used by other companies to make other products. Consumer goods are produced to be used directly by consumers.
Look at the pairs of pictures below and identify which good is an intermediate good and which is a consumer good.
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