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Explain briefly the basis of the classification of production units into secondary sectors. - Economics

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Question

Explain briefly the basis of the classification of production units into secondary sectors.

Explain
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Solution

  1. The classification of production units into the secondary sector is based on their role in transforming raw materials into finished or semi-finished goods. 
  2. These units use inputs obtained from the primary sector, such as cotton, minerals, or timber, and convert them into new products through processes like manufacturing or construction. For example, turning cotton into cloth is a secondary sector activity.
  3. This sector includes industries involved in manufacturing, construction, and the supply of electricity, gas, and water. Therefore, the key basis for this classification is processing or transforming natural resources into other usable forms.
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Chapter 20: Methods of Measuring National Income - TEST YOURSELF QUESTIONS [Page 409]

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Frank Economics [English] Class 12 ISC
Chapter 20 Methods of Measuring National Income
TEST YOURSELF QUESTIONS | Q 5. (ii) | Page 409
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