Classification of Economic Sectors
Economic activities are diverse, but many share similar characteristics. Based on these similarities, we group them into three main Economic Sectors:
- Primary Sector
- Secondary Sector
- Tertiary Sector
This classification helps us understand the economic structure and prosperity of a nation.
A. Primary Activities
The Primary Sector includes all economic activities where people are directly dependent on nature to produce goods. It is called “primary” because it forms the base for all other products that we subsequently make.
Key Characteristics
- Source: Direct extraction or utilization of natural resources.
- Nature: Usually involves biological processes (plants/animals) or geological processes (mining).
- Output: Raw materials (e.g., cotton, iron ore, wheat, milk).
Common Examples
| Activity | Description |
|---|---|
| Agriculture | Cultivation of grains, vegetables, and fruits. |
| Livestock Rearing | Raising animals for milk, eggs, wool, or meat (e.g., dairy farming, poultry). |
| Forestry | Collecting wood, timber, or other forest produce. |
| Fishing | Catching fish from rivers, lakes, or oceans. |
| Mining | Extracting minerals like coal, iron ore, or petroleum from the earth. |
Note
Think About It: When a farmer grows cotton, it is a primary activity because the growth of the cotton plant depends mainly on natural factors like rainfall, sunshine, and climate.