What is Service Sector? Explain
Its importance.
Answers
Explanation:
Tertiary sector of the economy
The service sector is the third of the three economic sectors of the three-sector theory. The others are the secondary sector, and the primary sector. The service sector consists of the production of services instead of end products. Services include attention, advice, access, experience, and affective labor.
Answer:
The service sector makes an important contribution to GDP in most countries, providing jobs, inputs and public services for the economy. Trade in services can improve economic performance and provide a range of traditional and new export opportunities.
(i) This sector helps in the development of the primary and secondary sectors.
(ii) The activities related to this sector do not produce key good but they are an aid or a support for the production process.
(iii) It also provides essential services that may not directly help in the production of goods such as services of teachers, doctors, barbers, lawyers, etc.
(iv) In recent times, certain new services based on information technology etc have become more important.
(v) The services which are included in the tertiary sectors are transport, storage, communication, banking, trade, etc.