Economics is the social science that studies economics activities to gain an understanding of the processes that govern the Production, Distribution and Consumption of goods and services in an economy.
There are three sectors of economy:-
A nation economy can be broadly divided into various sectors to define the proportion of people engaged in a particular sector.
- Primary Sector
- Secondary Sector
- Tertiary Sector
Primary Sector:-
This sector is involved in the extraction or harvesting of products from the Earth. It includes the production of raw material and basic foods. Some these activities included in this sector are Agriculture, Mining, Forestry, Fishing, Quarrying etc.
The package and processing of raw material is also considered as a part of this sector. As an economy develops the share of primary sector in total production and employment goes down.
Secondary Sector:-
The secondary sector of the economy involved in the production of finished goods. All manufacturing, processing, and construction activities lie in this sector.
Some of the activities in this sector are metal working, automobile manufacturing, textile production, ship building etc. where the secondary sector becomes the largest sector of the economy in terms of production and employment with the reduction in importance of the primary sector.
Tertiary Sector:-
The tertiary sector of economy also called as the services sector. This sector provides services to the general population and to business. Some of the activities which are part of this sector are retail, transportation, entertainment, tourism and banking etc. in the advanced developed economies, the tertiary sector is the largest in terms of production and employment.
These are the important sectors of economy.
