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Economic Activities Concept and Classification

This document discusses the concept and classification of economic activities. It defines economic activity as the production, distribution, and consumption of goods and services. Economists classify economic activities into five main sectors: the primary sector involves extracting raw materials directly from nature; the secondary sector includes industry and manufacturing that process primary materials; the tertiary sector focuses on services, distribution, and consumption; the quaternary sector is the knowledge sector providing administrative services; and the quinary sector involves high-level managerial and executive services.

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944 views12 pages

Economic Activities Concept and Classification

This document discusses the concept and classification of economic activities. It defines economic activity as the production, distribution, and consumption of goods and services. Economists classify economic activities into five main sectors: the primary sector involves extracting raw materials directly from nature; the secondary sector includes industry and manufacturing that process primary materials; the tertiary sector focuses on services, distribution, and consumption; the quaternary sector is the knowledge sector providing administrative services; and the quinary sector involves high-level managerial and executive services.

Uploaded by

Kamran Khan
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We take content rights seriously. If you suspect this is your content, claim it here.
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Concept and Classification

of
Economic Activities

Dr. Kaustuv Mukherjee


Asstt. Prof. in Geography
Chandidas Mahavidyalaya
Concept:
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. Economic activities exist at all levels within a society.

Additionally, any activities involving money or the exchange of products or services


are economic activities.
Definition:

Cambridge Dictionary -
“The activity of producing, buying, or selling products or
services.”

The University of Toronto’s Department of Economics –

“Economic activity is the process by which the stock of resources or stock of capital
produces a flow of output of goods and services that people utilize in partial
satisfaction of their unlimited wants.”
Economic activity – classifications
Economists say there are four basic types of economic activities:

– The Primary Sector, i.e., raw materials.

– The Secondary Sector, which includes industry and manufacturing.

– The Tertiary Sector, i.e., services.

– The Quaternary Sector, which we also call the ‘knowledge sector.’

- The Quinary Sector, managerial services


The Primary Sector

Direct Extraction of Materials and Production from Nature

Example: Agriculture, Fisheries, Forestry, Mining and Quarrying

Red Collar Workers


The Secondary Sector
Processing, transformation, qualitative upgradation of primary raw materials

Examples: Household and manufacturing Industries

Blue Collar Workers


The Tertiary Sector

Mainly services, Distribution, Exchange and Consumption of


Goods

Examples: Trade, Transport, Communication services

Pink Collar Workers


The Quaternary Sector

Knowledge sector and administrative Services

Examples: Banking, Hospital Services, Teaching, Research,


Information Services, Govt. Services

White Collar Workers


The Quinary Sector

High Level Managerial and Executive Services, mainly planners and


Decision makers

Examples: Ministrial job, Planning, Management, Decision making

Gold Collar Workers


Quinary

Quaternary

Tertiary

Secondary

Primary

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