Three-sector model

The three-sector model is a way of dividing up the economy into three main parts or sectors. Just like you divide up your playtime into different activities like playing with toys, coloring pictures, and building with blocks, we divide up the economy into three main parts.

The first part of the economy is called the Primary sector. This is where we get things from nature, like plants and animals. When we go to a farm and see crops being grown or cows grazing, that is the primary sector at work. It is called the primary sector because it deals with the first or primary products that we get from nature.

The second part of the economy is called the Secondary sector. This is where we take the things we got from nature in the primary sector and turn them into something new. For example, the wheat harvested from the farm in the primary sector might be taken to a factory in the secondary sector to make bread. The secondary sector is all about manufacturing or making new things out of the things we got from nature in the primary sector.

The third part of the economy is called the Tertiary sector. This is where we provide services to people. This includes things like healthcare, education, banking, and tourism. When you go to the doctor, go to school, or go on vacation, you are using services from the tertiary sector.

So, we have three main parts of the economy: primary, secondary, and tertiary. The primary sector gets things from nature, the secondary sector makes new things out of what we got from nature, and the tertiary sector provides services to people.