Buy custom a) Outline how and why the sectoral balance of an economy might change as it develops
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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 751 |
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As people gain more income the demand to save will rise as well the banking and investment services. Similarly higher tax revenues will lead to a large increase and public services. There are though exceptions to this general pattern for example New Zealand and Singapore, which skipped sector and more or less move straight into the tertiary sectors...
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One of these is changes income , primary products are inherently inelastic and will not be affected greatly by changes in income. Secondary products on the other hand are income elastic and services even more so. With rising GDPs the demand for these two sectors therefore increases leading to the expansion of both...
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a) Outline how and why the sectoral balance of an economy might change as it develops
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