Tertiary Industry

AAA

DEFINITION of 'Tertiary Industry'

The segment of the economy that provides services to its consumers. This includes a wide range of businesses including financial institutions, schools, transports and restaurants.

Also known as "tertiary sector of industry," or "service industry/sector".

INVESTOPEDIA EXPLAINS 'Tertiary Industry'

The tertiary industry is one of three industry types in a developed economy, the other two being the primary (raw materials) and secondary (goods production) industries. As an economy becomes more developed, it will shift its focus from primary to secondary and tertiary industries.

The tertiary industry is split into two main categories. The first is made up of companies that are in the business of making money, such as those in the financial industry. The second comprises the non-profit segment, wich includes services such as state education.

RELATED TERMS
  1. Sector

    1. An area of the economy in which businesses share the same ...
  2. Industry

    A classification that refers to a group of companies that are ...
  3. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  4. Economy

    The large set of inter-related economic production and consumption ...
  5. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  6. Factor Market

    A marketplace for the services of a factor of production.
RELATED FAQS
  1. What's the difference between old- and new-economy stocks?

    Old-economy stocks represent large, well-established companies that participate in more traditional industry sectors and ... Read Full Answer >>
  2. Why do economists think it is important to track discretionary income?

    Economists track discretionary, and disposable, income as a proxy for the growth in the financial health of average citizens ... Read Full Answer >>
  3. How do you calculate GDP with the expenditures approach?

    To calculate gross domestic product, or GDP, with the expenditures approach, add up the sums of all consumer spending, government ... Read Full Answer >>
  4. What are some benefits of a mixed economic system?

    In economic theory, a mixed economic system is a combination of capitalism and socialism, allowing for private property along ... Read Full Answer >>
  5. How does neoclassical economics relate to neoliberalism?

    While it may be likely that many neoliberal thinkers endorse the use of (or even emphasize) neoclassical economics, the two ... Read Full Answer >>
  6. In what manner will a recession likely affect the marginal-propensity-to-save rate ...

    The marginal propensity to save, or MPS, rises in most, though not all, recessions. This makes perfect sense on an individual ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Industry Handbook

    In this feature, we take an in-depth look at the various techniques that determine the value and investment quality of companies from an industry perspective.
  2. Economics

    What is Neoliberalism?

    Neoliberalism is a little-used term to describe an economy where the government has few, if any, controls on economic factors.
  3. Economics

    How Creative Destruction Happens in Real Life

    In his seminal work, Capitalism, Socialism and Democracy (1942), Joseph Schumpeter proclaimed “the essential fact about capitalism” as being a process “that incessantly revolutionizes the economic ...
  4. Fundamental Analysis

    Explaining the Empirical Rule

    The empirical rule provides a quick estimate of the spread of data in a normal statistical distribution.
  5. Economics

    Understanding Diseconomies of Scale

    Diseconomies of scale is the point where a business no longer experiences decreasing costs per unit of output.
  6. Economics

    Explaining Business-to-Consumer

    Business-to-consumer (BtoC or B2C) is a business model whereby a company sells its products directly to consumers.
  7. Economics

    Good Economic News The Cynics May Be Missing

    Headline data about the U.S. economy hasn’t been great, but the economy is actually stronger than it’s getting credit for.
  8. Economics

    Understanding Hyperinflation

    Hyperinflation is an economic term describing rapid, uncontrolled price increases.
  9. Economics

    Explaining Growth Rates

    Growth rate refers to the amount a specific variable or measure has grown over a specified time, whether related to one company or an entire economy.
  10. Economics

    What The Fed Needs To Consider Before A Rate Hike

    Everyone, from colleagues to clients, has some interpretation of when and if the Fed should raise short-term rates and start to normalize monetary policy.

You May Also Like

Hot Definitions
  1. Inbound Cash Flow

    Any currency that a company or individual receives through conducting a transaction with another party. Inbound cash flow ...
  2. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  3. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  4. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  5. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  6. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!