![]() The tertiary sector is sometimes sub-divided into tertiary, quaternary and quinary sectors. Human capital is usually the most essential resource used in tertiary production. Tertiary production involves the distribution of products and the creation of services, such as road haulage, financial services, and healthcare.Labour and capital are the main resources used in the secondary sector. Secondary production involves the manufacture of semi-finished and finished consumer goods, such as computers, motor vehicles, and clothing.Land and natural resources are the main resources used in primary production. Primary production, which involves the extraction of resources from the earth, such as agriculture, fishing, and mining.There are three main stages of production, corresponding to three economic sectors: Production is undertaken by firms, also known as enterprises, or businesses. ![]() Through exchange, consumption is satisfied by a process called production. They can then exchange this income for the products they need or want. To be able to consume, individuals need to exchange their skill and effort, or their enterprise, land or capital, for an income. The need and desire to consume drives individual economic actions and provides the motive for engaging in an exchange of scarce resources. ![]() The process of satisfying needs and wants is called consumption. In a modern and affluent economy, the satisfaction of wants frequently dominates economic activity, while in less developed economies the satisfaction of basic needs remain the overwhelming goal. As incomes rise the relative importance of wants increases in relation to needs. iPads, smartphones, designer clothes and foreign holidays are all examples of wants. In addition, the human species has wants, which also have a strong influence on behaviour. These result in a sustained demand for food, drink, clothing, and shelter. All humans are born with basic needs, including the need to eat and drink, the need to keep warm, and the need to be protected. The need to exchange has its roots in human biology. Economic activity is driven by the need to exchange. When people engage in paid work, they exchange their scarce time, effort, and skill for income, and, when people make purchases, they exchange their scarce income for scarce goods and services. Economic behaviour involves the exchange of one scarce resource for another.
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