Economic sector
Imagine a big playground where all the kids play different games with different toys. Similarly, the economy is like a big playground, but instead of kids, it has businesses and industries that play different games and operate with different resources to make money. We divide these businesses and industries into different groups based on the kind of game they play, and we call those groups economic sectors.
There are three main economic sectors:
1. Primary Sector: This sector includes all businesses that obtain resources directly from nature, like farmers who grow crops, miners who extract minerals from mines, fishermen who catch fish from the sea, and loggers who cut down trees from forests. These businesses are like the kids who play with toys that they find on the playground.
2. Secondary Sector: This sector includes all businesses that transform raw materials obtained in the primary sector into finished products that people can buy, like factories that turn metals into cars, or bakeries that turn flour into bread. These businesses are like the kids who build something out of toys they have found on the playground.
3. Tertiary Sector: This sector includes all businesses that provide services to other businesses and individuals, like doctors, lawyers, teachers, bankers, or shopkeepers. These businesses are like the kids who offer to help other kids on the playground, like helping them build something with their toys or teaching them a new game.
All these economic sectors together create the flow of money in an economy. The primary sector earns money by selling its resources to the secondary sector, which produces goods that the tertiary sector buys and sells to the consumers. Every business operates in one of these sectors and forms a part of a larger economic ecosystem where everyone plays a role in keeping the playground running smoothly.
There are three main economic sectors:
1. Primary Sector: This sector includes all businesses that obtain resources directly from nature, like farmers who grow crops, miners who extract minerals from mines, fishermen who catch fish from the sea, and loggers who cut down trees from forests. These businesses are like the kids who play with toys that they find on the playground.
2. Secondary Sector: This sector includes all businesses that transform raw materials obtained in the primary sector into finished products that people can buy, like factories that turn metals into cars, or bakeries that turn flour into bread. These businesses are like the kids who build something out of toys they have found on the playground.
3. Tertiary Sector: This sector includes all businesses that provide services to other businesses and individuals, like doctors, lawyers, teachers, bankers, or shopkeepers. These businesses are like the kids who offer to help other kids on the playground, like helping them build something with their toys or teaching them a new game.
All these economic sectors together create the flow of money in an economy. The primary sector earns money by selling its resources to the secondary sector, which produces goods that the tertiary sector buys and sells to the consumers. Every business operates in one of these sectors and forms a part of a larger economic ecosystem where everyone plays a role in keeping the playground running smoothly.
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