Business Studies – 1.2 Economic sectors | e-Consult

The economy is typically divided into three sectors: primary, secondary, and tertiary. These sectors represent different stages of economic activity.

Primary Sector: This sector involves the extraction of raw materials directly from the natural environment. It's the most basic sector and often relies on agriculture, fishing, and forestry. The primary sector provides the fundamental inputs for other sectors.

• Examples: Agriculture (growing crops like wheat or rice), Fishing, Forestry (timber production), Mining (coal, iron ore), Oil extraction.

Secondary Sector: This sector involves the processing of raw materials into finished goods. It's often manufacturing and construction-based. The secondary sector adds value to the raw materials obtained from the primary sector.

• Examples: Manufacturing (car production, food processing), Construction (building houses, roads, bridges), Energy production (power plants).

Tertiary Sector: This sector provides services to consumers and businesses. It doesn't involve the production of tangible goods. The tertiary sector is the largest sector in most developed economies.

• Examples: Retail (shops), Banking, Healthcare, Education, Tourism, Transport, Entertainment, Communication.

In summary, the primary sector extracts, the secondary sector manufactures, and the tertiary sector provides services.