Producers and consumers Producers are the people and businesses that make goods and offer services to individuals and other businesses that need them. A producer can be a person growing vegetables and flowers to sell at a market or a person working on a computer to produce an advertisement, business plan or set of accounting records. The photos below are examples of things people and businesses produce.


Mining


Oil and petrol


Packaging food


Fresh produce New words


producers: people and businesses that make goods


primary sector: sector of the economy that produces raw materials


secondary sector: sector of the


economy that uses raw materials to produce finished goods


tertiary sector: sector of the economy that produces services


consumers: people and businesses that buy and use goods and services


economist: a person who analyses and researches the economy


Baking


Work on a computer


Ceramics


There are producers in all three sectors of the economy.  In the primary sector, a farmer could grow grapes and use these to produce wine, or a fishing company could use the fish they catch to make tinned fish products.


 The secondary sector of the economy includes all the factories and home industries that use raw materials to produce finished goods, such as furniture, jewellery, machinery, baked goods, and so on.


 In the tertiary sector of the economy many businesses produce services to meet the needs of consumers, such as financial advice.


Consumers are individuals and businesses that buy goods or pay for services that they use. We are all consumers because we use goods and services every day of our lives.


Some consumers use more goods and services than others, depending on how much money they have to buy what they want, and how limited resources are. If consumers are able to meet all their needs and wants, this means they have a high standard of living.


The role of households as producers and consumers


Households are the people that make up the families and groups that occupy homes throughout the country. Economists use the term ‘households’ to describe all the people that produce and consume goods and services in a country.


26 Term 1 The economy and entrepreneurship


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