Question
Differentiate between sector on the basis of nature of activity with examples.

Answer

Classification of economic sectors on the basis of nature of activities are as follows:
  1. 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.
  2. 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.
  3. 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.

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