Lesson video

Hello there my friends and welcome to the sixth lesson on natural resources.

My name is Mr. Pedroza and today we're going to tackle the following question.

Are you ready? I know you are.

So the question that we're going to tackle today is, what is the circular economy? That's an interesting question.

So we're going to begin with the star words.

So I'll be sharing some key vocabulary.

Then I'm going to explain what the economy is.

Then we'll have a look at the linear economy, we'll relate back to the question, which is what is the circular economy in this lecture.

And then we'll have a go at our end of lesson quiz as always.

In this lesson, you're going to need your exercise book or paper where you can write some notes, where you can do the exercises I'll be setting you.

You need your pencil or your pen, and then you need your brain 'cause I'm going to give you lots of key information.

If you haven't got those things, go and get them now.

Okay.

Let's look at the key words for our lesson today.

So we've got four words.

We've got economy, disposable, recycling, and environment.

Let's go from the economy.

So, the economy is the system of money of how money is made and used within a particular country or region.

So the system of how money is made and used within a particular country or region is called the economy.

Good job.

Now we've got disposable and disposable means something that is meant to be thrown out after use.

It's something that is meant to be thrown out after use that is called disposable.

Good job.

Now, recycling is the activity of processing things so that they can be used again.

The activity of processing things so that they can use again is called recycling.

Good job.

And recycling is really helpful for the environment.

And the environment are the conditions that surround us in which animals and humans live, the natural world, including the air, the water and the soil.

So the conditions that surround us in which animals and humans live in the natural world, including the air, the water and soil is called the environment.

Great job guys.

Now let's have a look at what the economy is.

So the economy, the word economy, comes from the Greek word, I'm going to have a go at pronouncing this way or 'Oikos'.

And 'oikos' means a person who manages the house.

And so the economy is the system of making and trading things of value.

And it's usually divided into two things.

You can divide it into goods, so physical things that you can buy, but also services for things that are done by people that you can also buy for a certain amount of money.

And these things of value are traded through finance, which we can think of in really simple terms as money.

So think of goods.

So it could be a chocolate that could be a good, a service might be a trip to the barber or the hairdresser.

That would be a service because it's something done by people.

The economy is the system of making and trading things of value.

It's divided into goods, so physical things, into services, which are things that are done by people.

And these things are paid through finance, which is called money.

Now during early human civilization goods were traded through bartering, which was trading items of equal value without using money.

Humans later developed the concept of money and said they could pay for things by using money instead of battering things, instead of exchanging things.

Now let's do our first task, is this is true or false question? So, easy-peasy, an economy is a system of making and trading things of value.

Is that true? Or is that false? Have a go, and then one we'll come back, we'll mark it together.

Okay, let's see what you said.

Are you ready? And economy is a system of making and trading things of value.

Is a true or is it false? It is true.

Good job.

Remember the economy is usually divided into goods, which are physical things, and services, which are things done by people.

And these things of value are traded for finance, which in simple terms we can think of as money.

Excellent job guys.

Well done.

Now, so to better understand how the economy works, we can discuss it into three sections.

So we've got the primary, the secondary and the tertiary.

Wow, this is a difficult word.

Now the primary sector covers raw products from farming, fishing, and mining and so on.

So in the primary sector of the economy, that's all about the production of raw materials.

And these raw materials are used for consumption.

So a consumer will consume them such as food, or for manufacturing.

So it could be things like: consumption would be farming because you're eating the food, fishing again, will be consumption because you're going to eat the produce.

Mining will be for manufacturing because you're going to use those natural resources in order to turn them into products.

So examples of things that would come under the primary sector of the economy would be corn and coal and wood and iron.

So remember that in the primary sector of the economy, that is all about production or raw materials for consumption or manufacturing.

Great job guys.

Now, before I go there, so a job that would fit into this category would be a coal miner.

He would be someone who works in the primary sector.

A fisherman would also work in the primary sector, a farmer would also be working in the primary sector because all of their jobs are dedicated to the production of raw materials.

And that relates to this question.

So can you name, Oh my goodness! I've just given the answer.

Can you name three types of jobs related to the primary sector of the economy.

So three jobs, where the jobs are dedicated to the production of resources, of raw materials for manufacturing and consumption.

So have a think and then write it down.

Have a go.

Okay.

Let's have a look.

Made it too easy because I gave you the answer, but let's have a look.

Can you name three types of jobs related to the primary sector of the economy? So three types of jobs related to the primary sector of the economy includes farming, fishing, and mining.

Great job.

And remember that they relate to the primary sector of the economy, because the primary sectors of the economy is all geared towards the production of natural resources for consumption or manufacturing.

Great job guys.

Okay.

Let's have a look at the secondary sector of the economy.

So the primary sector is dedicated to the use of, to the production of raw materials.

The secondary sector involve transforming those raw materials into goods, into products.

And so in this sector, in the secondary sector, you have two distinct categories.

You have a light industry and you also have a heavy industry.

And light industries involve things such as: food production, it could be textiles.

So things that are used for making clothes, it could be paper, it could be plastic.

And these light industries require few materials.

They require fewer space and they require fewer energy.

Then the heavy industries.

And the heavy industries, as the name might suggest, involves the production of really heavy products or large and heavy equipment and facilities.

And examples of heavy industries include steel making and shipbuilding.

So in those jobs, you are turning raw materials into products.

Now, many of the industries in the secondary sector of the economy, particularly those in the heavy industries that consume large quantities of energy and raw materials, and they require lots of factories and machinery to convert them into goods and products.

They also, unfortunately, they produce lots of waste materials and waste heat, and these cause environmental problems and pollution.

So remember the primary sector of the economy is all geared towards the production of natural resources or raw materials for manufacturing and consumption.

Good job.

And then the secondary sector is all about transforming those goods from the primary sector, those raw materials from the primary sector into goods, into products.

So let's have a look at this task.

So in this task, we got some blank spaces, and the following words can go into those spaces, but you got to put them in the right place.

Otherwise it's not going to make sense.

So you've got raw materials, you have light, you have textiles, you have heavy, you have shipbuilding and you have manufactured.

So have a think about where those words are going to go.

Once you've written them down, read the text, see if it makes sense.

And then when you come back, I'll let you know what the answer is.

Have a go.

Okay.

Let's check ours answers.

You're ready.

Alright.

Here are the answers.

So the second sector of the economy involves a transformation of raw materials into manufactured goods.

Remember the primary sector is all geared towards producing raw materials for the secondary sector to turn them into manufacturing goods.

Great start.

This sector, the secondary sector, can be divided into light industries and heavy industries.

And the light industries include food production and textiles, whilst heavy industries include steel production and ship building.

So there we used raw materials, manufactured, we used light, we used heavy, textiles and ship building.

We used all of them.

Great job guys.

Now it's time to check your work.

Tick or fix.

Amazing work team.

Let's keep going.

So let's move on to the third sector, the tertiary sector of the economy.

Now.

So the tertiary sector supports the production and the distribution of products and raw materials.

And this can be seen as the production and distribution process.

And examples of this could be maybe insurance, it could be transport, it can be advertising, it can be warehousing, and it can be other services such as teacher, that's a part of the tertiary sector, and healthcare.

And so all sectors of the economy are interlinked.

So the primary sector, which is the production of raw materials, fits into the secondary sector, because that's going to turn those raw materials into products.

And then in the third sector, the tertiary sector, those products, they're going to be advertised, they're going to be stored, they're going to be transported all around the world, all around the country, and then they're going to be sold.

So you can see that all of these sectors of the economy are interlinked.

And so I'm going to show you an example here.

And the example is the production of oil.

I'm going to get my pointer.

This is a perfect example of how the three sectors are all interlinked.

So here we have the primary sector.

And in the primary sector, you're extracting the oil from the ground.

So you're getting your natural resources with this oil rig.

This oil, this petroleum is then taken out to a special facility.

And in this facility, the petrol, the oil is turned into fuel.

And in this secondary production sector, remember that all of this machinery which have also been built by the secondary sector of the economy 'cause it's heavy machinery.

It's a heavy industry.

Now, once this pixel has been developed, has been made, is then taken to the pump.

And then at the pump, at the petrol station, you have some advertising.

And obviously the transport is also part of the tertiary sector because it's taking the fuel that has been manufactured here.

And then it's taken to the petrol station.

So have a look at how all of these sectors are interlinked.

So the primary production sector, the primary sector of the economy, is where you extract the oil.

The secondary sector is where you turn that oil into petrol.

And then the third sector here is where you advertise, you transport the fuel or you transport the petrol, and then finally it is sold.

You also have warehousing where you can store the petrol after you made it.

So that's how those three sectors are interlinked.

True or false? All three sectors of the economy, the primary, the secondary and the tertiary are interlinked and are dependent on each other.

Is that true? Or is that false? Have a think and then when we come back, we'll reveal the answer.

Okay.

What do you think? Do you think yes, do you think no? I think it's true.

So all three sectors of the economy, the primary, the secondary and the tertiary are interlinked and are dependent on each other.

Is that true? Or is that false? That is absolutely true.

They are all interlinked, they all fit into each other.

Now let's have a look at the UK economy.

So now that we know about the different sectors of the economy, so we know the primary, which is geared towards the production of raw materials.

Good job.

The secondary, which is geared towards using those raw materials to produced manufactured goods.

And the third one, which is all about advertising.

It's all about transporting.

It's all about selling those goods.

So now let's have a look at the UK economy.

What kind economy does the UK have? So the UK has a market economy, which is sometimes called a free market.

And the market economy is based on supply and demand.

So consumers are free to buy whatever product they want and companies can make whatever product they want without government interference, without much government interference.

And so this is the employment structure of the United Kingdom.

So you can see that the main sector of the economy, the main source of employment in the UK economy is the tertiary economy.

So services.

So it could be banking.

It could be sales, could be insurance.

The primary sector is really small.

So the sector of the economy where people are employed, where they are extracting raw materials is really, really low.

And then the secondary sector, which is the manufacturing side is also fairly low.

Now let's have a look and see why that might be the case.

So in the UK, there's a low proportion of people working in the primary industry.

And the reason for that is partly because of mechanisation.

So machinery has taken over the jobs of many people in this primary sector.

And also the UK's primary resources, their natural resources such as coal, have become exhausted.

Remember that the last UK coal mine closed in 2015, partly because it was quite difficult to get any coal because you had to dig really deep.

It was too expensive and it was quite dangerous.

So the primary sector of the economy in the UK is quite low.

It's quite small.

And the UK now tends to import a consider amount of its nonrenewable resources.

Now the number of people employed in the secondary sector is fallen.

And this is because there are fewer people, fewer people that need to work in factories, as robots are also taking over their jobs, but also due to competition from other countries where it's cheaper to work, where it's cheaper for companies to produce something in a different country than it is in the UK.

Now, most people in the UK are employed in the tertiary sector and this is the main growth area.

So most people in the UK, they tend to work in hospitals.

they work in schools, they work in offices, they work in financial services, such as insurance, such as banking.

And also as more people have free time because they're not working in the primary sector, they're not working in the secondary sector.

And as more people have become wealthier, there is a greater demand for leisure services or entertainment.

And so therefore more of those jobs become available in the tertiary sector of the economy.

Let's complete the sentence.

That the UK has a.

economy.

Consumers are free to.

whatever they want and companies are free to produce whatever they want.

What are the two missing words? That's for that sentence.

And then you have a second sentence here.

So most people in the UK are employed in.

In which sector or most people in the UK employed? Have a think, have a go.

When we coming back, I'll let you know what the answers are.

Have fun.

Okay, let's have a look.

Are you ready? I know you're ready.

That the UK has a market economy.

Good job.

Remember the market economy is also sometimes refereed to as the free market.

And in the market economy, consumers are free to buy whatever they want and companies are free to produce whatever they want.

Most people in the UK are employed in the tertiary sector.

Excellent job guys.

Well done.

Now we come to the linear economy.

So, now we can think of the economy as either being linear or circular.

But what does that mean? So in the linear economy, the money and resources, they travel in one direction through several steps.

There is a beginning and then there is an end point.

My apologies.

In the first step raw materials, they're are extracted from the earth and these resources could be materials like oil, it could be wood, it could be metals, and it could be.

In the second sector, in the second part of the linear economy, these resources are transported to factories so that they can be turned into products that we can use.

In the third sector, in the third part of the linear economy, consumers buy and they use these products.

In the fourth part of the linear economy, once you use these products and you don't need them anymore, they are disposed off as waste.

And this waste tends to end up in landfill sites.

Not much of it is recycled.

It creates pollution.

It creates problems for the environment.

So this is the linear economy.

So it goes in one direction, has the beginning and it has an end point.

First you get the raw materials.

Then you transport those raw materials to factories where you manufacture them into goods.

Then you sell them to consumers, the consumers then buy them and they use them.

Once consumers have used them and they no longer need them, then they are disposed of as waste.

That is the linear economy.

It goes in one direction.

That's why it's called linear.

Guys, now it's your turn.

Do you remember all of the different stages of the linear economy? I've given you the first one 'cause I'm really kind.

So linear economy, four stages, Beginning, has an end.

The beginning is the raw materials.

What happens after that? Have a think, have a go.

When you come back, I'll reveal the answers.

Okay.

Let's have a look.

Are you ready? Are you going to want me? I find you've got all four right.

So easy peasy, raw materials first.

So you get the raw materials, you extract them from the earth.

Then you transport them to factories so that they can be turned into the products that we use.

Then you sell them to consumers, consumers that buy them and they use them.

And then finally these products, they come to the end of their use, they're disposed off as waste and they tend to end up in landfill sites.

So those are different stages of the linear economy.

Okay.

So now that we know about the linear economy, what problems come from having such a system? So linear economies, which became way of the production of raw materials, the extraction of raw materials, they're used in manufacturing, turning them into goods, then consumers buying them, and then consumers disposing them as waste.

So linear economies, they're really, really wasteful.

And you can summarise the linear economy with the following: take, make, use, throw away.

So you take the natural resources from the earth.

You make something with them, you turn them into a product for manufacturing, you use them, the consumers buy them they use them, once they don't need them anymore, they throw them away.

So whenever you think of the linear economy, you can go take, make, use, throw away.

And so this is incredibly inefficient because it doesn't take into account the fact that earth resources are finite, so they're going to run out eventually.

It doesn't take into account all of the precious materials, that can be lost in landfills when they're just disposed off in that way.

And so an example of a precious metal that is lost in landfill sites are the metals that are found in mobile phones.

And in the developed world like the UK, people tend to change their phones quite frequently.

In developed countries, in wealthy countries like the UK, people tend to change their phones quite frequently, maybe once a year, maybe once every two years.

And so most of the old phones, they tend to end up in landfill sites, where precious metals that are inside phones such as gold, silver, and copper, they're lost.

Remember all of these precious materials, they are finite.

They will run out eventually.

And so if we're ending up with all of these precious materials in landfill sites, that's a complete waste.

In time, all of this waste, also creates substantial pollution.

Plastic is a really great example of the dangers of the linear economy, because plastic is a huge source of pollution in the world's oceans, which causes major harm to Marine life.

So again, think of the linear economy as take, make, use, throw away.

The linear economy is really wasteful because precious materials can be lost in landfill sites.

The linear economy tends to ignores that the earth's resources are finite, that they're going to run out.

And it creates lots and lots of pollution.

So, question number one is, how could the linear economy be summarised as? Think of the easy way that I gave you to remember what the linear economy could be summarised as.

In what way is the linear economy inefficient? And then number three, which precious metals are lost from mobile phones, which ends up in landfill sites? So have a go, when we come back, I'll let you know what the answers are.

Okay.

So let's have a look at the answers to those three questions.

So question number one was, how could the linear economy be summarised as? So we say the linear economy can be summarised as take, make, use and throw away.

Remember you take the natural resources from the earth, then you make something out to them for manufacturing.

As consumer, you buy them, you use them, and at the end you throw them away, when you no longer need them.

Question number two, in what way is the linear economy inefficient? So we said the linear economy is inefficient as it doesn't take into account the fact that earth resources are finite.

That means they're going to finish at some point, and they cannot be replenished.

And number three, which precious metals are lost from mobile phones, which end up in landfill sites? So when mobile phones end up in landfill sites, precious materials, such as gold, silver and copper tend to be lost.

Now, there are some people who make a living out of extracting those precious materials from phones, which end up in landfill sites.

But working in a landfill site, as you can imagine, is quite a dangerous job, is not healthy.

And so we would rather not have those phones end up in landfill sites, where people are forced to do that kind of job.

So those are the answers to those three questions.

Okay, let's have look.

Now is there an alternative? So we know that the linear economy is really inefficient.

Is there a different way? Well, there is my friends and we come back all the way to the opening question.

So the circular economy.

What is the circular economy? So the circular economy is different.

By recycling much more of what humans use, and by changing the way that we make different items and we make different products so that they can be reused or that they can last longer, we can reduce the amount that we are throwing away.

And so the circular economy can be best summarised as take, so you take the natural resources, you make and manufacture something out of them.

You use them, at this point in the linear economy, you'll be throwing them away.

No, no, no, not in the linear economy, in the circular economy.

In the circular economy, you going to reuse that product.

If you cannot use that product, you're going to use those materials to remake them, and therefore you are taking less resources from the earth.

So take, make, use, reuse, remake, take less.

Now the circular economy again is driven by increased recycling, but not just by that, but also by improved design.

So companies and manufacturers improving the design of other products so that people are not tempted to change the product so often, so frequently, but also that they are longer lasting, they're more durable so that there's no need to get a new product.

There's no need to replace something that works.

Now a circular economy that's keep precious resources in the economy.

Remember in the linear economy, precious resources, such as gold, copper, and silver, they just find a way.

They find away into the landfill site.

In the circular economy, we try to avoid that.

And waste is viewed not as a bad thing, but as a resource, something that we can use to produce new things again.

Next question.

But how could the circular economy be summarised as? Think about the easy way to remember it.

And number two is in what way is the circular economy more efficient than the linear economy? Have a think, have a go, when we come back, I'll let you know what the answers are.

Okay.

Let's have a look.

You ready? How could the circular economy be summarised as? So I said, the circular economy can be summarised as take, make, use, reuse, remake and take less.

Great job if you got that right.

In what way is the circular economy more efficient than the linear economy? So in my answer, I said, the circular economy is more efficient than the linear economy, as it recycles and reuses more of the precious resources of which products are made from.

This also leads to less pollution.

Remember that in the linear economy, everything has to end up in a landfill site.

That creates lots of pollution.

That creates lots of harm to the environment.

In the circular economy, we try to avoid that as much as possible.

And it starts and happens a lot less than in the linear economy.

So those are the answers to those three questions.

Okay.

Let's have a look.

You ready? Let's go onto the last section now.

Now in the circular economy, products are designed to be reused, repaired, and when they're no longer usable, they can be taken apart to be recycled into new products.

So think of the circular economy as more than just recycling.

You're not just recycling, you're deliberately, manufacturers are deliberately designing things so that they are easier to be reused, they are easier to be repaired, and if all else fails, they're easier to be taken apart so that those resources, the material resources that they are made from, can be reused again.

Therefore, manufacturers tend to design the product so they're longer lasting and more efficient.

And the circular economy is also about changing consumer's attitude.

It's also about changing the attitudes of people.

So instead of buying a new product when it breaks or when it becomes a little bit outdated, it's about changing the attitudes of our consumer so that they are more keen to either repair it or to keep it for longer.

And a prime example is mobile phones.

Mobile phones do not need to be changed every single year.

That's quite inefficient.

So in the circular economy, a way to change consumer attitude would be to get people, to keep their phones for longer if they work.

So, let's have a look.

In what way does the circular economy seek to change consumer attitudes? I'm making this, I just gave you the answer.

But have a go, see how you phrase it.

And then we'll have like an compare with my answer.

Good luck.

Okay.

Let's compare notes.

You ready? So in what way does the circular economy seek to change consumer attitudes? So I said the circular economy seeks to get consumers to repair broken products and to keep them for longer, if they are still in good condition.

That's the kind of way in which the circular economy tries to change consumer attitudes.

If you get consumers to change the attitude towards buying new things when they need them, less resources are going to be spent.

That's the reason why you want to change consumer attitudes.

Okay.

Let's have a look at some key examples of the circular economy inaction.

So some companies have already introduced products to aid the development of the circular economy.

And there is a Dutch company called Mud Jeans.

And as their name suggests, no, I'm not joking.

They're not made from mud.

Mud Jeans, which is a company in Holland.

They make jeans from recycled denim and they mix it with some new cotton to keep the quality high.

Now there's also a new technology, which is called waste to energy.

And this new technology that's currently being developed can generate electricity by burning rubbish, primarily food waste.

And it's done so in a way that does not harm the environment.

So, those are three examples.

So we've got recycled jeans.

So instead of just throwing old clothes into the landfill site, you reuse those old clothes, you make new ones.

Waste to energy is again about using waste to produce something new.

So using food waste to create energy.

Now, another concept that is beginning to take hold in the circular economy is the idea of collaborative consumption.

And this is where people share products that they don't need to use every day with their local community.

Sometimes in exchange for a small amount of money, sometimes for a different product that they might need.

So this could include things like printers, it could include fan site drills, garden equipment, building tools, kitchen appliances, and sometimes even washing machines.

Now a famous example of collaborative consumption is the shared bike scheme in London.

You might have seen these bikes if you live in London, sometimes they're referred to as bars bikes.

And so rather than everybody buying a storing their own bike consumers, anybody, can just rent a bike and they can travel for a small fee.

And this has proven to be very, very popular.

And last year, over four million people used the service.

So instead of 4 million people buying a bike, imagine how many resources that would take? Four million people could just share all of these resources.

They could just share these bikes.

And that is an example of collaborative consumption.

So three examples from the circular economy.

So we got recycled jeans.

So using old clothes to make new ones.

Waste to energy, so using food waste to generate electricity.

And the London bike scheme where you're using something and you're sharing it with other people.

And guys that is the end of your lesson.

So it's now time to complete your end of lesson quest.

And again, if you'd like to share what you have learned in this lesson, you can ask your parent or carer to share your work on Twitter.

You can go @OakNational, and then you look for the hashtag #LearnwithOak.

And then.

Well that's an excellent work in this lesson.

Guys, I hope you enjoyed this lesson.

I hope you had a lovely time.

I like learning about the economy.

It's really important to learn about the economy because it affects your lives on a daily basis.

So the more informed you are, the better decisions that you're going to make when you are adults.

So I hope you enjoyed the lesson.

I hope you learned lots and I shall see you next time.

Goodbye my friends.