The Division of Labour & the Production Possibility Curve.

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James Wengraf


              The Division of Labour & the Production Possibility Curve

1a)         Primary production is the process of extraction of minerals from various natural sources, for example, the earth’s crust or the sea. Here are two examples of primary industry, farming and fishing.

1b)         Secondary production is the process of turning the raw, unprocessed materials that have been extracted, into something that can be sold for a profit. This process is called manufacturing. Two examples of manufacturing are, turning unprocessed diamonds into valuable gems, and the making of cars.

1c)         Tertiary production does not actually revolve around a tangible product that has been extracted from somewhere. It is the supply of a service, for example, the education system or the retail of clothes.

2)         The predominant reason why employment in the manufacturing sector has declined is because of cheap imports. It is cheaper nowadays for a business to import the products it needs than to manufacture the goods themselves. This is because of cheap labour overseas, in china for example, where workers are paid very low wages to produce a product like a television.

        The second reason why employment in the secondary sector has diminished is because the tertiary sector has grown, and so there is a demand for more workers, whereas demand has fallen in the manufacturing sector due to various factors. This is a clear sign of the further development of the British economy, for as countries develop, they shift from primary production, through secondary production and finally the tertiary sector becomes the strongest industry.

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        The third reason why employment in the manufacturing sector has lessened is that the size of the mining and quarrying industry has almost halved over an 8 year period. This is primarily because of the difficulty in extracting British coal, due to how far underground it is. Whereas, in Germany, their coal is relatively near the surface of the ground, making extraction costs much cheaper, and therefore cheaper to export to other countries.

3)         Two other trends from the table are, firstly, the significant reduction in employment in the energy and water supply industry. This may have been caused ...

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