IGCSE Chapter 2 & 3 - Review

1. Which sector extracts natural resources like farming or mining?

• Primary sector
• Secondary sector
• Tertiary sector
• Public sector

Answer explanation

The primary sector focuses on extracting natural resources from the earth, such as farming, fishing, and mining.

2. What is the secondary sector involved in?

• Providing services
• Producing raw materials
• Manufacturing goods
• Selling products

Answer explanation

The secondary sector transforms raw materials into finished or semi-finished products through manufacturing and construction.

3. What type of sector provides services to consumers and businesses?

• Primary sector
• Secondary sector
• Tertiary sector
• Public sector

Answer explanation

The tertiary sector is responsible for providing services, such as banking, retail, and education, to individuals and other businesses.

4. In a mixed economy, which sectors exist?

• Only private sector
• Only public sector
• Both public and private sectors
• Only government-controlled businesses

Answer explanation

A mixed economy combines both public (government-owned) and private (individually-owned) sectors.

5. What is the main focus of a private sector business?

• Providing free services
• Earning profit
• Controlling the economy
• Collecting taxes

Answer explanation

The primary goal of private sector businesses is to make a profit, unlike the public sector which might focus on providing services.

6. Which of the following is a public sector business?

• Fast food chain
• Bank
• National hospital
• Car manufacturing company

Answer explanation

Public sector businesses, like national hospitals, are owned and run by the government to provide essential services, often at low or no cost.

7. What does de-industrialisation mean?

• Growth of the primary sector
• Decline in the importance of the secondary sector
• Increase in service sector jobs
• Closing all factories

Answer explanation

De-industrialisation refers to the decline of manufacturing (secondary sector) in an economy, often with a shift towards the service (tertiary) sector.

8. Which term refers to the process of developing industries in a country?

• Specialisation
• Industrialisation
• De-industrialisation
• Chain of production

Answer explanation

Industrialisation is the process of developing industries and increasing manufacturing capacity in a country or region.

9. What is the "chain of production"?

• Different levels of services provided
• Process of adding value at each stage
• Stages from raw materials to finished goods
• Cost of making a product

Answer explanation

The chain of production refers to all the stages a product goes through, from gathering raw materials to delivering the final product to consumers.

10. Who is an entrepreneur?

• Someone who works in a factory
• Someone who owns government businesses
• Someone who starts and manages a business
• Someone who works in public sector

Answer explanation

An entrepreneur is a person who starts, owns, and manages a business while taking on the risks involved.