RAS Prelims: Concepts and Practice

Learning outcome

You can place a farm, a factory, and a service in the three sectors.

Concepts and why

The primary sector takes things from nature and does the allied work around that. Growing wheat, and keeping animals, sit here. The secondary sector makes goods. A mill that turns wheat into flour sits here. The tertiary sector provides services. A shop that sells the flour, or a bank, sits here. The same wheat can pass through all three. The sector follows the work, not the crop alone. This lesson does not say which sector is the largest. That share changes.

Worked examples

A farmer growing wheat is in the primary sector. A flour mill is in the secondary sector. A bank is in the tertiary sector. It is not a farm.

Common mistakes

Calling every food business primary. A mill makes a good. A shop sells a service. Calling a bank primary because it handles money that farmers use. Stating a fixed share for agriculture as if it never changes.

Practice questions

1. Which sector is a wheat farm in?
2. Which sector is a flour mill in?
3. Which sector is a bank in?

Answers and explanations

1. Primary.
2. Secondary.
3. Tertiary.

Analogy

A mango can be picked, cooked into a sweet, and then served at a counter. Picking is primary. Cooking the sweet in a workshop is secondary. Serving it is tertiary. The mango did not stay in one sector for the whole journey.

Quick reference

Primary: growing crops and allied work such as keeping animals. Secondary: making goods. Tertiary: services, including a shop or a bank.