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Explain how the 3 sectors of the economy are dependant on each other?

The three sectors of economy are interdependent upon each other in the following ways:

  • The primary sector provides the base for all economic activities as it involves production at the most basic level, i.e. through exploitation of natural resources. This includes agriculture, horticulture, fisheries, forestry, mining, etc.
  • The goods that are produced are converted into processed forms through manufacturing. It is the secondary sector of the economy. This sector depends upon primary sector for raw materials and in turn, provides a market for the producers of primary sector.
  • The tertiary or service sector provides support to the process of production. It includes transportation, storage, marketing and sale of products. Other services include communication and banking. These sectors are necessary to aid production while themselves deriving their sustenance from it.

Thus, it can be concluded that all three sectors of the economy are interdependent upon each other.

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all the three economis secters depend on one another. if their is no production from primary sector, the secondary sector will not get raw materials to manufacture useful commodities. if the secondary sector does not manufacture anything, the tertiary sector will not be able to make them available to the people. thus tertiary sector will also cease to work. if ttertiary sector does not provide any service, then primary sector production will not be useful as it could not be transported, or stored. thus interdependencies exist in these sectors.

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Explain how the 3 sectors of the economy are dependant on each oth...

 

Explain how the 3 sectors of the economy are dependant on each other?
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