Study Guide: Economic Sectors and Factors of Production

developed nation

also known as a "First-World Nation" or an "Industrialized Nation."These nations tend to have: high GDP, high literacy rates, low death rates, low birth rates, jobs from all three sectors, all four factors of production, and a high standard of living.

developing nation

also known as, "Second-World" or "Third-World" nations. These nations tend to have: lower GDP, lower literacy rates, higher death rates, higher birth rates, jobs from only one or two of the sectors, are missing some of the factors of production, and lower standard of living.

entrepreneurship

creativity and risk-taking. It is important because creativity in business drives progress and improvements to goods and services.

Capital

money

Primary Sector

sector of the economy that includes jobs that collect/gather raw materials. Examples: farmer, fishermen, lumberjack.

Secondary Sector

sector of the economy that includes manufacturing jobs. These jobs take raw materials and process or turn them into finished goods. Examples: car factory worker, pencil factory worker.

Quaternary Sector

sector of the economy that includes research and design jobs. This sector of work tends to improve the other three sectors. Examples: Ferrari research and design team, electrical engineer.

Tertiary Sector

sector of the economy that includes service jobs and distribution of goods and services. Examples: clerk at Staples, manager at Kings.

Gross Domestic Product (GDP)

the amount of money a nation spends on goods and services in one year.

Land

the amount of usable land and resources available.

Labor

the amount of workers and their level of education

Economic Sectors

the four divisions (categories) of an economy: primary, secondary, tertiary, and quaternary. Certain jobs will fall under one of those specific categories.

Factors of Production

the four factors that make an economy successful. These include: labor, land, capital, and entrepreneurship.