The term primary industry means, getting something directly from the earth or using the natural resources for business. E.g. farming or mining etc. The term secondary industry means using raw materials to make products for business, example of secondary industry; turning dairy into milk to produce cheese. The term tertiary or service industry means providing jobs and services for other people, like banking, window cleaning etc. The large coal mining and steel making industries in south Wales have now almost disappeared and new jobs and business have taken over it. Jobs like Hitachi and a biscuit making company, which are secondary industries have taken over the old coal business.
The Market Economy - Supply and Demand.
When goods are in short supply and the demand for it is high, then the price goes up because when goods are in short supply consumers are prepared to pay more for goods they want or need. When goods are in plentiful supply and the demand is very low, the price will decrease because those who couldn't buy that product before will now be able to afford it.
Social cost.
The jobs that are in very low demands. The workers usually get paid very low wages or they get sacked. When the company is not making enough profit they shut down they old business and run a new business and those who were employed for the old business, would get sacked or replaced by those who are good at the new business.
One quarter of a million people once worked in the south Wales coal industry in 1917. Now there are very few because the demand for coal has declined and the reason for this is that companies are competing with each other, they reduced the price of their coal. The use of coals in people's houses is reduced because people now use electricity rather that coal.
these people who have lost their jobs feel very angry and disappointed, some are now too old to get another job and others have nothing else to do especially the young ones, who only hang about, doing nothing.
