Classification of businesses: Practice Questions

A business that extracts natural resources from the earth, such as a copper mine or an oil rig, belongs to which sector?

Which of the following best describes how resources are allocated in a mixed economy?

As an economy undergoes de-industrialisation, many workers in the manufacturing sector lose their jobs because they do not possess the digital skills required for the expanding tertiary sector. This specific economic challenge is known as:

What is the primary objective of most business enterprises operating in the private sector?

A government decides to nationalise a failing private airline to ensure that domestic flights continue to serve remote communities. What is the most likely reason for this shift from the private sector to the public sector?

A company extracts crude oil from an offshore rig. Identify the sector of industry this belongs to and provide one reason for your choice.

A farmer in the primary sector requires transport and insurance to sell their crops to supermarkets. Identify which economic sector these services belong to and explain why they are vital for the primary sector.

The following data shows the change in a country's economic sectors over a decade:
Manufacturing sector: fallen from \(45\%\) to \(20\%\) of GDP.
Service sector: risen from \(40\%\) to \(75\%\) of GDP.
Identify this process and explain one reason why this shift might occur.

In many countries, a mixed economy exists where both the private sector and the public sector operate.

a) Distinguish between the private sector and the public sector in terms of ownership and primary objectives.
b) Explain why a government might choose to keep certain industries, like public transport, in the public sector rather than privatising them.