Chapter - 14

SECTORS OF THE ECONOMY &

FACTORS OF PRODUCTION

AUNTORIP KARIM - CLASS VIII ECONOMICS - CHAPTER 14

 PRIMARY SECTOR SECONDARY SECTOR TERTIARY SECTOR
Agriculture Manufacture Service

AUNTORIP KARIM - CLASS VIII ECONOMICS - CHAPTER 14

 □Sectors of the economy

• Primary sector involves extracting of resources from the Earth. For example,
farming, fishing, mining.

• Secondary sector includes the manufacturing and construction industry

where raw materials are converted into finished or semi-finished goods. For
example, carpentry, garments factory.

• Tertiary Sector includes the service industries. For example, banking,

insurance, transportation.

AUNTORIP KARIM - CLASS VIII ECONOMICS - CHAPTER 14

 Under Developed Economy

Tertiary
10%

Primary
60%

Secondary
30%

AUNTORIP KARIM - CLASS VIII ECONOMICS - CHAPTER 14

 Developing economy

Tertiary
10%

Primary
30%

Secondary
60%

AUNTORIP KARIM - CLASS VIII ECONOMICS - CHAPTER 14

 Developed Economy

Primary
15%

Tertiary
50%

Secondary
35%

AUNTORIP KARIM - CLASS VIII ECONOMICS - CHAPTER 14

 □Factors of Production:
1) Land - It includes all natural resources (gifts of nature). For example, mineral
wealth, fields.
2) Labour -It refers to the physical and mental efforts by workers.
3) Capital - Man-made resources which aid in the production process. It helps to
produce more goods. For example, machinery.
4) Enterprise – Enterprise is the entrepreneur’s business/ business idea.
Entrepreneur is the person who organizes the other three factors of production.
This person is the risk taker and enjoys all profits or bears all the losses.

AUNTORIP KARIM - CLASS VIII ECONOMICS - CHAPTER 14

Q) Asses whether it is easier for firms in the secondary sector to increase the productivity of
labour than firms in the primary sector. (9 marks)
Ans: In the secondary sector, productivity can be increased by division of labour which can lead
to greater use of machinery. When the workers are trained to use the machines, fewer workers
are needed to operate them.

On the other hand, the primary sector depends on the factors outside the control of man. For
example- weather. So, even if a farmer uses fertilizers and latest farming methods, the yield can
be destroyed by drought or flood hence productivity is reduced.

However, in the primary sector, more machinery can be used, such as- tractors, processing
machines and mining equipment which can increase productivity significantly. Modern fertilizers
and sophisticated farming such as genetic manipulation have also made vital input in increasing
productivity of primary sector till a limited extent.

AUNTORIP KARIM - CLASS VIII ECONOMICS - CHAPTER 14

 THE END

AUNTORIP KARIM - CLASS VIII ECONOMICS - CHAPTER 14