Question

Read the following statements, and choose the correct option.

Assertion (A): Sectoral division analysis is vital for economic growth.

Reason (R): Using such sectoral divisions, the government measures the contribution of each sector to the GDP of a country.

• A. Both A and R are true, and R is the correct explanation of A.
• B. Both A and R are true, but R is not the correct explanation of A.
• C. A is true, but R is false.
• D. A is false, but R is true.

Answer 1

The correct option is A Both A and R are true, and R is the correct explanation of A.

The economy is divided into three categories according to the nature of activities, namely primary activities, secondary activities, and tertiary activities. This division of activities is useful for calculating GDP because it helps measure the economy of each sector and make improvements, if necessary.