Answer 1

1. The different type of occupations practiced in different countries across the world, result in economic transactions within a country and outside a country. This decides the country’s production of various goods and its annual income.
2. Countries practicing primary occupations have lesser annual income as compared to countries practicing tertiary occupations.
3. This is because, the skills and investment required for the primary occupations are lesser as compared to the tertiary occupations further resulting in lower incomes.

Thus, countries with more manpower engaged in tertiary activities are considered to be developed countries, while countries with more manpower engaged in primary activities are considered to be developing countries.