Economics 3 Video 4 different types of economic activity or sector that produces different things of different value Primary Sector: - Extracting or taking natural resources, ex: farming, livestock, raising, forestry, fishing, mining - Not worth much until you do something with it - Oil is a prime example it costs 100 for a barrel of oil which is like 40 or 50 cents a gallon - Milk is the same way - Oil may be expensive but to make a profit from it by selling a hell of a lot of it - You don’t make the real money until you do something with it, in this case you refine the oil Processing and Manufacturing Sector: - Taking a raw commodity and making it something better, basically making stuff - You are adding value to the raw commodities - Adds tremendous value to the product - Example compare oranges to orange juice, orange juice costs more money than the raw product Oranges - Example you can get a raw pineapple at the store, get the store to chop it up and put it in a can, and it costs more - Roasting Coffee Beans Example - Fist to a Filet - Taking a log and making it a 2 by 4 or planks or laminate it - Steel - Raw Oil to Gasoline - Raw Oil to Plastics - Leather and other products that are independent and combine them to make something worth more - Makes up all the products consumers buy Tertiary Economic Sector: - They provide a service which makes things much more valuable once again we keep going up in value as we go up these economic sectors example contractor: - A dude who build a house for you now he arranges for all the to buy boards and bricks in the pipes in the sink - you're probably getting services most things like say on the record at the - mall and you are you're providing a service by helping people try on the clothes are bring the clothes but the clothes on the shopping that is providing a service getting these Goodrich new place where people can buy them actually is kinda nice service well on priority restaurants to inkwell with a restaurant - they take stuff actually from the primary industries they take fashion grains and booed but then they provide a service they could get it for you then you know pretty and had their skills so it pays better and they charge a helluva lot more money when it's on that plate broader view Fab 4:
its service every service sector oriented but they're mostly lower-wage jobs when you compare to say a place like the Netherlands and probably I could pick on Saudi Arabia because the saudis are a very rich country high levels well per capita will talk about what that means a little bit but they owe you one thing and that oil I R you don't even need to see damn chart know that they make what was 102 well of a voyeur and that seems great because they got a ton of it the most in the world and they export the most in the world every year the biggest exporter so that's how they got away with becoming so rich in region region rich but but my Saudi friends your %uh diversified bitches you got nothing else going on in your economy and
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- Spring '10
- Economics, Service Sector, Primary Industries