Question

Explain briefly the basis of the classification of production units into primary sectors.+

Answer 1

The basis of classifying production units into the primary sector is the direct use of natural resources in the production process. Production units that extract or utilise resources from nature to produce goods are grouped under this sector. These activities involve minimal processing and rely heavily on environmental inputs such as land, water, and minerals. Examples include agriculture, forestry, fishing, mining, and quarrying. Thus, exploitation of natural resources is the key criterion for classifying a unit as part of the primary sector.