Definition

Economy

The process or system in which goods and services are produced, sold and bought in a country or a region. It is the operation of the supply of money, commercial activities and industry.

Sectors

There are three sectors of economic activities. These sectors are highly interdependent. There would be no single sector without the other.

Primary Sector

The Primary sector produces natural goods. For example, agriculture, which produces crops, a natural product. Another example could be dairy, again a natural product. Since this field is dominated by agricultural activities, this sector is also called the agriculture and related sector.

Secondary Sector

This sector uses the goods produced by the primary sector to transform it into something more. For example, making biscuits from wheat or making a table from the timber. This sector involves a lot of industrial activities, thus it is also known as the industrial sector.

Tertiary Sector

This sector is different from the other two. How? Because this doesn’t really produce goods but it provides the support for the other two sectors. The activities in the sector are to provide services (Thus, it is called the service sector). For example, transport services, or doctors, and teachers, communication, banking, administration, etc. The more developed the tertiary sector, the more developed the country.


Backlinks

Eco Ch2


Flashcards

What is economy? ? The process or system in which goods and services are produced, sold and bought in a country or a region. It is the operation of the supply of money, commercial activities and industry.

What are the different sectors of economic activities? ?

  • Primary Sector - produces natural goods
  • Secondary Sector - produces manufactured goods
  • Tertiary Sector - Provides services

What is the Primary Sector? ? The Primary sector produces natural goods. For example, agriculture, which produces crops, a natural product. Another example could be dairy, again a natural product. Since this field is dominated by agricultural activities, this sector is also called the agriculture and related sector.

What is the secondary sector? ? This sector uses the goods produced by the primary sector to transform it into something more. For example, making biscuits from wheat or making a table from the timber. This sector involves a lot of industrial activities, thus it is also known as the industrial sector.

What is the tertiary sector? ? This sector is different from the other two. How? Because this doesn’t really produce goods but it provides the support for the other two sectors. The activities in the sector are to provide services (Thus, it is called the service sector). For example, transport services, or doctors, and teachers, communication, banking, administration, etc.

The more developed the {{tertiary}} sector, the more developed the country.