Structure of the Economy Sectors of an economy

Structure of the Economy Sectors of an economy – Primary, Secondary and Tertiary Sectors Primary Sector – those firms which produce natural resources by growing plants, like wheat and barley, digging for minerals, such as coal and copper, or breeding animals, are called primary firms and belong to the primary section or primary industry in an economy. Primary industries are also called extractive industries.

Secondary industry – the use of raw materials to make other goods is known as manufacturing and firms who engage in this activity belong to the manufacturing or secondary industry. For example, the record industry presses records from plastic made from oil. Cars and vans are made from metals.

Tertiary industry A great many firms do not produce any goods at all. Many sell goods, transport them, or provide financial services, like the banks, building societies and insurance companies. There also many more personal services, like hairdressers, window-cleaners, tailors, gardeners. All these firms provide a service and belong to the service sector in the economy.

Factors of production 1. Land 2. Labour 3. Capital 4. Entrepreneur.

National Output = The total amount of output produced in an economy with these resources is known as the national output. The total amount of income earned in an economy is its national income. The circular flow of income is a way of showing how the mechanism works to circulate output, spending and incomes in an economy over a period of time so that wants can be satisfied.

The total value of output produced by all domestic firms in the in United Kingdom is known as the Gross domestic product (GDP). GDP is a very important measure of how much a country earns. GDP is the total money value of all of the goods and services produced in a country in one year, and is therefore equal to the total national income of the country because someone must be paid for producing these products. IT is the amount of income per head, or GDP per capita, which is important, rather than the total size of GDP, when measuring the standard of living in a country.

Another view of national output is to recognize that goods and services are produced by factors of production. The payment made for their work is a cost for firms but an income for the owners of the factors of production. Thus , the value of national output should also be the same as the total value of incomes earned in a period of time, or national income. A budget is an estimate of Government spending and revenue for the coming year.

Mauritius aspires to become: v a thriving, a competitive and modern society, where the population enjoys a high standard of living. v the region’s leading centre for international financial services, including banking, insurance and other consultancy services v a liberal and well-regulated Cyber Island with state-of-art Information Technology infrastructure and a supporting physical and social infrastructure. Future projects: a network of mass transit system , jobs nearer to residence.

va liberal and well-regulated Cyber Island with state-of-art Information Technology infrastructure and a supporting physical and social infrastructure. Future projects: a network of mass transit system , jobs nearer to residence. v an essential node in the variety of international and regional network flows allowing Mauritius to create its niche in international profit bearing flows.

v an ecologically well-balanced economy ensuring that higher growth is environmentally sustainable. Social Welfare The Mauritian population is expected to increase to 1. 37 million by 2020, with the most economically active age groups representing about 69 % of the total population. The proportion of young adults staying in the learning/training sphere will increase, resulting in the building up of a top quality work force which is expected to be enterprising, well qualified, highly skilled and productive. This will be crucial for the structural transformation of the company.