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Exploring Types of Production in Economy

May 5, 2025

Types of Production - Key Points

Overview

  • The article discusses the three main types of production, also known as sectors of industry, which are primary, secondary, and tertiary.

Types of Production

Primary Production

  • Involves extraction of raw materials or natural resources from the land.
  • Examples:
    • Farming
    • Mining
    • Fishing
    • Oil production

Secondary Production

  • Involves manufacturing or processing raw materials into new products.
  • Examples:
    • Car manufacturing
    • Food production
    • Building companies

Tertiary Production

  • Involves providing services rather than goods.
  • Examples:
    • Hairdressing
    • Banking
    • Supermarkets
    • Cinemas

Economic Shifts in the UK

  • Initial focus on primary production (e.g., farming, fishing, mining) until the mid-18th century.
  • Industrial Revolution: Shift to secondary production (manufacturing) from late 1700s to mid-1800s.
    • Key industries: textiles, iron, steel.
    • Urban migration for factory jobs.
  • Late 20th century: Shift to tertiary sector economy (services).
    • Driven by technological advancements, globalization, and changing consumer demands.

Factors Contributing to Economic Shifts

Industrial Revolution

  • Invention of machinery increased manufacturing efficiency.
  • Reduced need for agricultural labor.
  • Migration from rural to urban areas for factory jobs.

Globalization and Resource Discovery

  • Access to new materials and global trade expansion.
  • Discovery of resources like coal in Britain.

Technological Advancements

  • Recent technology (e.g., computers, automation) transformed the job market.
  • Decline in manufacturing jobs, rise in service sector opportunities.
    • Examples: web design, software development.

Self-Test Section

  • Encourages checking understanding of dominant economic sectors before the Industrial Revolution.