Types of Economic Activity

Question 1

What is economic activity?

Answer 1

Economic activity is the activity of making, providing, purchasing, or selling goods or services. Any action
that involves producing, distributing, or consuming products or services is an economic activity.

Question 2

What is the primary sector and two examples?

Answer 2

The primary sector is that part of the economy that is involved in the production of raw materials or the extraction of raw materials from the land. Examples: forestry, mining, agriculture and fishing

Question 3

What is the secondary sector with examples?

Answer 3

This sector includes all firms that convert raw materials into finished goods. In developing economies, this
sector grows faster than the primary sector. Examples: furniture manufacturing, restaurants, electronic companies, paper product manufacturing

Question 4

What is the tertiary sector with examples?

Answer 4

The tertiary sector is that part of the economy where the firms provide services to consumers and
businesses. Examples: banking, transport, insurance, tourism

Question 5

Why is each important?

Answer 5

Primary- it contributes to the economic gross

Secondary- contributes to increasing employment, improvement in the balance of payment and an improvement
in people’s standard of living national product

Tertiary- shows that an economy is developing