SECTORS OF THE ECONOMY

ECONOMIC CLASSIFICATIONS

•THE MORE DEVELOPED AN ECONOMY IS, THE GREATER NUMBER AND VARIETY OF ACTIVITIES YOU WILL FIND.

PRIMARY SECTOR (1ST)•MOST BASIC COMPONENTS OF ECONOMY•ACTIVITIES REVOLVE AROUND GETTING RAW MATERIALS FROM EARTH•EXAMPLES: FARMING, FISHING, RAW MINING

SECONDARY SECTOR (2ND)•PROCESSING RAW MATERIALS ACQUIRED THROUGH PRIMARY ACTIVITIES INTO FINISHED PRODUCTS OF GREATER VALUE•ACTIVITIES REVOLVE AROUND FACTORIES AND MANUFACTURING•EXAMPLES: BABY FOOD, CARS, MY LITTLE PONY DOLLS

TERTIARY SECTOR (3RD)•FOCUSES ON MOVING, SELLING AND TRADING PRODUCTS MADE IN PRIMARY AND SECONDARY LEVELS AND SERVICES•ACTIVITIES INVOLVE PROFESSIONAL AND FINANCIAL INSTITUTIONS AND SERVICES•EXAMPLES: CARPET CLEANING BUSINESS, RESTAURANT, BANKS, GROCERY STORES

QUARTERNARY SECTOR (4TH)•INVOLVES INFORMATION CREATION AND TRANSFER•ACTIVITIES ASSEMBLE, DISTRIBUTE AND PROCESS INFORMATION•EXAMPLES: RESEARCH, UNIVERSITIES OR BUSINESS OPERATIONS

•QUINARY SECTOR (5TH) IS A SUBSET OF THE QUARTERNARY THAT INVOLVES THE HIGHEST LEVEL OF DECISION MAKING LIKE PRESIDENTIAL CABINET OR HIGH EXECUTIVES AT LARGE COMPANIES