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One classical breakdown of economic activity distinguishes three sectors:[1]

  • Primary: involves the retrieval and production of raw materials, such as corn, coal, wood and iron. (A coal miner, farmer or fisherman would be workers in the primary sector.)
  • Secondary: involves the transformation of raw or intermediate materials into goods e.g. manufacturing steel into cars, or textiles into clothing. (A builder and a dressmaker would be workers in the secondary sector.)
  • Tertiary: involves the supplying of services to consumers and businesses, such as baby-sitting, cinema and banking. (A shopkeeper and an accountant would be workers in the tertiary sector.)

In the 20th century, economists began to suggest that traditional tertiary services could be further distinguished from "quaternary" and quinary service sectors. Economic activity in the hypothetical quaternary sector comprises information- and knowledge-based services, while quinary services include industry related to human services and hospitality.[2]

Historic evolution


An economy may include several sectors (also called "industries") that evolved in successive phases:

Even in modern times, developing countries tend to rely more on the first two sectors, in contrast to developed countries.

By ownership


An economy can also be divided along different lines:

See also


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