What are the categories of production activities?

The categories of production activities could relate to the different sectors of the economy in which production takes place. These sectors, or categories, are as follows: Primary, secondary and tertiary. In these different sectors, specific production activities take place; these are described below. The way in which the economy is split into sectors could lead to conclusions being drawn about various countries, through the sector in which their people work. In countries where the majority of income is drawn from work in the primary sector, there are often low living standards. Alternately, countries which are strongly supported by the tertiary sector tend to be developed and have a high average income.

• The primary sector

The primary sector includes the extraction and handling of raw materials. It is the first stage of any production process. Examples of work that is in the primary sector include farming, collecting cocoa beans and mining. Workers aim to take raw materials from the natural environment, in order for these materials to then be sent onto factories or production plants to be turning into finished products.

• The secondary sector

In the secondary sector, raw materials and unfinished goods are turned into finished products ready for sale. The sector also includes the industries of construction and product development. Manufacturing processes take place in the secondary sector.

• Tertiary sector

The tertiary sector is the category of the economy in which services are provided. Common services include hairdressing, financial advising and banking. The majority of developed countries now operate primarily in the tertiary sector, largely due to the recent increase in demand for legal and financial services.