Economic systems and Factors of production The economy describes how the country uses the factors of production

We can divide the economy into 1) Primary Sector extracts or grow the natural resources for production. Eg. Agriculture, oil and gas, mining, quarrying, fishing and forestry. These are natural. 2) Secondary industries process/make/manufacture/produce goods using raw materials (natural or man made). Eg. Construction, automobile manufacturing, assembles. 3) Tertiary industries that serves the primary and secondary industries & industries. Eg. Transport, accountants, lawyers, marketing, banking, teachers, police etc. 4) Quaternary industries deal with Research and development, and data processing. HK primary industry is around 0.4%. No natural resources. HK tertiary is around 60%. Secondary industry is around 39.65% Economic systems describe HOW the economy is run and resources are allocated. There three main are 1) Free Market 2) Mixed Market 3) Command Market Derived Damend All goods are derieved from demand. Entrepreneurs take decisions and risk. If I want something, I am more willing to pay for it.

All goods require different combination of factors of production. FOP=CELL Factors Of Production EQUALS Capital Enterprise Land Labour