How are the activities in economy classified on the basis of economic activities?
Answers
(i) Organized
(ii) Unorganized
The organized sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops Act etc. Examples are reliance Industries Ltd, Tata Motors etc.
The unorganized sector contains enterprises not registered by the government. The unorganized sector is characterized by small and scattered units which do not follow proper rules for employment or give any leaves or other benefits. Examples are casual workers in construction, in shops, garages, etc.
Classification of economic sectors on the basis of nature of activities are as follows:
(i) Primary sector:
When we produce goods by exploiting natural resources, it is an activity of the primary sector, such as agriculture, dairy farming, fishing, forestry.
(ii) Secondary sector:
In this, natural products are changed into other forms through manufacturing that we associate with industrial activity. The product is not produced by nature but has to be made and therefore, some process of manufacturing is essential. For example, using cotton fibre from the plant we spin, yarn and weave cloth.
(iii) Tertiary sector:
It helps in the development of the primary and secondary sectors. They provide aid or a support for the production process. Transport, storage, communication, banking, trade are some examples of tertiary activities