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Question
Explain briefly the basis of the classification of production units into territory sectors.
Explain
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Solution
- The classification of production units into the tertiary sector is based on their role in providing non-tangible goods.
- The tertiary sector provides these services instead of tangible goods.
- Unlike the primary and secondary sectors, which involve the extraction of natural resources or the manufacturing of goods, the tertiary sector focuses on supporting economic activities by offering services that facilitate production, distribution, and consumption.
- This sector includes areas like trade, transport, communication, banking, insurance, government services, and professional and personal services.
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Chapter 20: Methods of Measuring National Income - TEST YOURSELF QUESTIONS [Page 409]
