Question

What are the three sectors of economy? Explain.

Answer 1

The Three Economic Sectors. According to the three-sector theory, all economic activity can be classified into one of three sectors: the primary sector, the secondary sector and thetertiary sector.

Answer 2

The three sectors of economy are:

1. Primary Sector

2. Secondary Sector

3. Tertiary Sector/ Service Sector

Primary Sector:

It is also known as the “Extraction sector” because it involves taking of ‘raw materials’. These can be wool, fish, wind power, coal, mining, etc.

Secondary Sector:

The secondary sector takes raw materials combine them to produce a higher value product and a finished good. Wool is spun to make better quality wool.

Tertiary Sector/ Service Sector:  

It involves providing services to the consumers. It is an intangible way of providing help to the consumers. Banking, Insurance are few services offered.