Question

Study the two statements labelled as Assertion (A) and Reason (R).

Assertion (A): Sectoral division is very useful to economics.

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, secondary, and tertiary.
Primary sector: The primary sector encompasses all activities whose ultimate goal is to exploit natural resources. For example, agriculture, fishing, forestry, mining, etc. fall under primary sector activities.

Secondary sector: The secondary sector processes raw materials produced by the primary sector into manufactured goods and products. Heavy manufacturing, food processing, oil refining, and other industries are examples of secondary industries.

Tertiary sector: The tertiary sector is made up of operations that provide diverse services to the primary and secondary sectors. Tertiary activities include trade, transportation, communication, banking, education, health, tourism, insurance, etc.

This division of activities is useful for calculating GDP because it allows us to measure the economy of each sector and make improvements, if necessary.