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Unit 43 Pass 1
Outline the Economic Environment of the UK, referring to:
a) The contribution to the economy of the three sectors [highlighting the types of business or
organisation in each sector];
b) The role of government;
c) How resources are allocated
...
In order to
complete this task I will be talking about the three sectors, the responsibility of the government and
allocation of resources
...
) The contribution to the economy of the three sectors [highlighting the types of business or
organisation in each sector];
The UK economy is a structure, which is made up by three sectors, each having a big part on the
economic environment
...
E
...
Agriculture, gas and oil removal
Secondary sector – Involves developing and creating finished goods
...
g
...
E
...
Government,
National grid, education, fuel cultivating, retailing, financial providers, tourism, health care
Gross Domestic Product (GDP) for a country such as the UK, is a measure of the sum of services and
goods formed over a certain amount of time
...
These would have the same results, with the
primary sector having least and the tertiary sector with the highest
...
People are willing to spend
more money for the services of other businesses such as night clubs and shops, increasing the
number of employees to provide those services
...
) The role of government;
Now I am going to explain the role of the government
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Some of the main tasks of the government involve:

1
...
The UK economy has put in a tough performance ever since the year 1997 when
labour came to authority
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The first is to secure a steady level of economic
growth; the second is to uphold inflation, third is to work to attain full employment and the
forth is to check the stage of balance of payments
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There’s also balance of payments in equilibrium so there are as

much exports as imports, price stability which is due to low inflation, and economic growth
relating to rising goods and services
...
) Providing public services
Public services by the voluntary sector have caused a debate with its role in society
...
There are some
government proposals which express the view that social endeavours should be an essential
part of public service liberation
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These include protection from forces such as the army, NHS, health care so hospitals
can help those in need
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Law and order, which ensures that all people can avoid crime, and
learning so that younger students can obtain the full education needed to work through their
lives
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) Providing cash benefits / ensuring a fair distribution of income
Cash benefits and distribution income is a couple of those initial performances the
government need to provide
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The government would need to attain whether they can provide these
benefits for those who need them
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To do this, the government
should give people more benefits such as child payback for better security of children’s lives,
job seekers allowance, which is the main benefit for people of working age who are out of
work, where people over 25 can gain about £62
...
EMA is for those students who receive payment for
going to lessons within college
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) Regulating the Private Sector [businesses]
Although this part of the economy does not include the government, they would be involved
with providing the laws which these private businesses would have to follow if they want to
be successful
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) Consumer protection
These involve goods which should be ‘fit for a purpose’, within the consumer Protection Act
1987
...

The Consumer Credit Act 1974 lays down that consumer credit can only be given by licensed
organisations
...
In 2004 the
government plans to expand the safeguards offered to consumers under this law
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b
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Some companies would attempt to avoid
this by preventing monopoly and cartel
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c
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These involve breaks, protection
against unfair dismissal and the employment relations act 1999
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They must
also immediately re – employ people who they have unfairly dismissed, and grant up to
three months parental leave to mothers and fathers
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) Health and Safety at work
The Health and Safety at Work Act 1974 sets out the laws which employers have towards
workers and members of the community
...
So a manager does not have to take
measures to avoid or decrease the risk if they are in theory of it not being possible or if the
time, problem or price of the methods would be very uneven to the risk
...
) Protecting the environment
A well kept environment is vital to value of life and achievement of both rural and urban
vicinities
...
A main part of operating this strategy is ‘sustainable development’ – which
means, making sure what we do today to create what we need doesn’t compromise the skill

of future generations to do the same
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f
...
e
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Different types of land use include Loggedover Forest, Industrial Plantation and Rubber Plantation
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c
...

Resource allocation means how resources are united to create goods and services for expenditure
...
The UK also uses
different types of economic resources to improve their goods and services, and what they use can
change the way the business is run
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Labour – Labour performed by people
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Land – All naturally occurring resources
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)
Government planning e
...
police, education
ii
...
g
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Main actors
Ownership
Motivation

Private sector
(markets)
Businesses, customers,
workforce
Individuals, shareholders,
organisations i
...
privately
owned
Producers, consumers and
factory owners , self interest
Business – max profit
Consumers – Maximise welfare
‘best value’
Workers – max earnings

Public sector
(government)
Populace, government
Publicly owned, the state
i
...
state, on public’s behalf
Reflection of the ‘good’ of the
society
Recovering private sector
Public good i
...
good value
public services

Competition

Organisations in rivalry, owners
and shareholders – but risk of
monopoly + cartel

Government attempting to bring
in choice and competition

A mixed economy is when a significant quantity of resources is allocated by both the private sector
and government
...
This table explains the UK as a mixed economy
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Conclusion
To conclude, the economic environment within the UK can be displayed within the primary (removal
of resources), secondary (developing and creating finished goods) and tertiary (providing a service)
sectors of the business world, within the laws which are made from the responsibility of the
government, and within the way the country’s resources are allocated for sales to keep the financial
system running
...




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