Question

Explain any two reasons why the classification of economic activities into primary,

secondary and tertiary is useful.​

Answer 1

Answer:

The classification of economic activities into primary, tertiary and secondary is useful on account of the information it provides on how and where the people of a country are employed. Also, this helps in ascertaining as to which sector of economic activity contributes more or less to the country’s GDP and per capita income.

If the tertiary sector is developing much faster than the primary sector, then it implies that agriculture is depleting, and the government must take measures to rectify this. The knowledge that the agricultural profession is becoming unpopular or regressive can only come if we know which sector it belongs to. Hence it is necessary to classify economic activities into these three sectors for smooth economic administration and development.

Answer 2

Explanation:

Reasons for classifying economic activities are;

Imposition of various rules and regulaions and taxes in each sector

People can differentiate which level of service is required by them.

There are three main sectors of economy, the primary sector, secondary and tertiary.

Primary sector deals with basic raw material and its extraction or production from land or natural resources. This includes agricultural activities, mining, forestry, fishing etc

Secondary sector is about manufacturing from the raw materials taken from primary sector

Tertiary sector is related to services provided to above two sectors.