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When we produce a good by exploiting natural resources, it is called ______. - Economics

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Question

When we produce a good by exploiting natural resources, it is called ______.

Options

  • Tertiary sector

  • Secondary sector

  • Primary sector

  • Public sector

MCQ
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Solution

When we produce a good by exploiting natural resources, it is called primary sector.

Explanation:

The primary sector of the economy involves producing goods by directly exploiting natural resources such as agriculture, forestry, fishing and mining. It is called primary because it forms the base for all other production activities. Goods produced in this sector are known as primary goods or natural products.

Hence, producing goods by exploiting natural resources is called activity in the primary sector.

  • The secondary sector involves manufacturing goods using raw materials from the primary sector.
  • The tertiary sector provides services rather than goods.
  • The public sector refers to government-controlled sectors, not specifically related to natural resource exploitation.

Therefore, the correct answer is primary sector.

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Chapter 2: Basic Economic Entities in an Economy - QUESTIONS [Page 22]

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J. P. Goel and Kaushal Goel Economics [English] Class 9 ICSE
Chapter 2 Basic Economic Entities in an Economy
QUESTIONS | Q 9. | Page 22
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