Ch 7 Classification of business

Which sector involves a range of farming and the extraction of raw materials from the earth?

• Primary sector

• Secondary sector

• Tertiary sector

• Quaternary sector

Answer explanation

The primary sector involves a range of farming and the extraction of raw materials from the earth, making it the correct choice for this question.

What is the main activity of the secondary sector?

• Production of services

• Extraction of raw materials

• Conversion of raw materials into finished and semi-finished goods

• Research and development

Answer explanation

The main activity of the secondary sector is the conversion of raw materials into finished and semi-finished goods.

Which of the following is an example of a tertiary sector activity?

• Mining

• Car production

• Financial services

• Textile manufacturing

Answer explanation

Financial services fall under the tertiary sector, which involves providing intangible goods such as services rather than physical products like mining, car production, or textile manufacturing.

What term is used to describe the decline in manufacturing?

• De-industrialisation

• De-globalisation

• De-centralisation

• De-regulation

Answer explanation

De-industrialisation is the term used to describe the decline in manufacturing, making it the correct choice among the options provided.

Why has manufacturing declined in developed countries while services have grown?

• People prefer to spend more on manufactured goods

• There is less competition in manufacturing

• The public sector mainly provides services

• Advances in technology have no impact on manufacturing

Answer explanation

The public sector mainly provides services, leading to a decline in manufacturing in developed countries.

What is the primary focus of the quaternary sector?

• Manufacturing

• Information and technology services

• Agriculture

• Retail

Answer explanation

The primary focus of the quaternary sector is on information and technology services, making it the correct choice.

Which of the following is a characteristic of the tertiary sector?

• High level of automation

• Direct interaction with consumers

• Extraction of natural resources

• Mass production of goods

Answer explanation

The characteristic of the tertiary sector is direct interaction with consumers, making it the correct choice among the options provided.

What significant factors have led to the growth of service sector employment in the UK?

• Increase in global trade

• Advancements in technology

• Reduction in consumer spending

• Increase in manufacturing jobs

Answer explanation

Factors such as increase in global trade and advancements in technology have contributed to the growth of service sector employment in the UK.