Question

When we produce goods by exploiting nature , In which Category of the economic sector such activity comes?

Answer 1

Hint : primary sector is based on raw material which is manufactured into goods by secondary sector.
The three sector model in economics divides economies Into three sectors of activity: extraction of raw material (primary), manufacturing (secondary), and services (tertiary).

Complete Step By Step Solution
When we produce goods by exploiting nature it comes in the category of the secondary sector also known as manufacturing sector or industrial sector .
1. It covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity.
2. It is the next step after primary, where the product is not produced by nature but has to be made. Some processes of manufacturing are essential, it could be in a factory, a workshop or at home.

Example using cotton fiber from plants we spin yarn and weave cloth; Using sugar cane as raw material we make sugar or gur; we convert earth into bricks. Since this sector is associated with different kinds of industries, it is also called industrial sector

Economic development
A primitive economy will rely on the primary Sector economic development allowing more refinement of raw materials to produce goods and services with greater value added. To manufacture goods requires greater human capital, and also better technology to be able to make use of raw materials and produce a finished good.

Advantages of developing secondary sector :
1. enables higher Incomes. greater income elasticity of demand for manufacturing
2. diversify the economy away from relying on primary products
3. with greater value added, manufacturing enables higher real wages than in agriculture.
Enables countries to specialize and benefit from economies of scale.

Potential costs of developing secondary sector
1. Pollution from manufacturing production process.
2. Work in factories is boring and repetitive, workers can become alienated.
3. Developing economies may lack necessary human capital and have to import workers and machines, which could prove very costly.

Note: The UK economy was primarily based on agriculture until the 18th century. However, the development of new technologies like the steam engine enabled rapid industrialization and the growth of the secondary sector. The economic development encouraged people to leave the land and go and work in the new factories springing up across The UK . The manufacturing sector became the biggest employer and also the biggest component of the UK economy