Do you think the classification of economic activities into primary secondary tertiary services sectors is useful ? explain how.
Answers
Explanation:
Yes, classification of economic activities into primary, secondary and tertiary sector is useful as it helps in estimating the relative importance in the growth in GDP of the economy. Classifying in such a way helps in calculating how much goods and services are produced and how many people work in each sector.
Explanation:
1) People are engaged in different activity to earn their
livelihood. These activities are broadly categorized in to three i.e.,
primary sector, secondary sector and Tertiary sectors.
(2) Agriculture and related activities such as fishing, forestry,
mining where nature has a dominant role in the production
process comes under primary sector.
(3) Manufacturing processes& other industries, where goods are
produced by people using tools or machines is secondary sector.
(4) Those activities that do not directly produce a good but
provide services that are required in production and other
services for people comes under tertiary sector or service sector.
This includes services such as distribution, communication,
transportation, hotels and information technology.
(5) Division of all economic activities in to three groups is
useful to understand the characteristics of economic
behavior of the country. Nature of employment, what
percent of people are engaged in each sector, contribution
to GDP, which sector is attaining progress.
(6) This classification of economic activities also enable us
to understand the behavior of the different activities and
their impact on the economy.