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How do we count and calculate the value of goods and service in the 3 economic sector?
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How do we count and calculate the value of goods and service in the 3 ...
The following guidelines aid in calculating the total production in a given sector:- The value of the goods are calculated rather than the numbers of the individual goods.-The value calculated is of the final products and services which automatically includes the values of the intermediate goods and services. -The total production is then acquired by adding the total value of the final value of the goods and services in a given sector. This will give us the GDP in this sector.It is better to understand that with an example, supposedly you have a raw material of wood worth 1000 INR and its polish of 500 INR, so a total of 1500 will be considered and they will not be calculated separately.
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How do we count and calculate the value of goods and service in the 3 ...
Counting and Calculating the Value of Goods and Services in the 3 Economic Sectors


Introduction

The economy is divided into three sectors: primary, secondary, and tertiary. Each sector produces goods and services that contribute to the overall economic growth of a country. The value of these goods and services is calculated through a process called Gross Domestic Product (GDP).

Primary Sector

The primary sector comprises activities that involve the extraction and production of natural resources such as agriculture, forestry, fishing, and mining. To calculate the value of goods and services produced in the primary sector, the following steps are taken:

  • Calculate the total output of each sector

  • Multiply the output by the market price of the goods and services produced

  • Add up the value of all goods and services produced in the primary sector



Secondary Sector

The secondary sector comprises activities that involve the manufacturing and construction of goods. To calculate the value of goods and services produced in the secondary sector, the following steps are taken:

  • Calculate the total output of each sector

  • Multiply the output by the market price of the goods and services produced

  • Add up the value of all goods and services produced in the secondary sector



Tertiary Sector

The tertiary sector comprises activities that involve the provision of services such as transportation, education, healthcare, and banking. To calculate the value of goods and services produced in the tertiary sector, the following steps are taken:

  • Calculate the total output of each sector

  • Multiply the output by the market price of the goods and services produced

  • Add up the value of all goods and services produced in the tertiary sector



Gross Domestic Product (GDP)

GDP is the total value of goods and services produced within a country over a specified period. To calculate GDP, the following steps are taken:

  • Add up the value of goods and services produced in the primary, secondary, and tertiary sectors

  • Subtract the value of imports from the total value of goods and services produced

  • Add the value of exports to the total value of goods and services produced

  • The resulting figure is the GDP of the country



Conclusion

Counting and calculating the value of goods and services in the three economic sectors is vital in determining the overall economic growth of a country. The GDP provides a comprehensive picture of the economy and helps policymakers make informed decisions.
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Read the extract given below and answer the questions that follows:There are many activities that are undertaken by directly using natural resources. When we produce a good by exploiting natural resources, it is an activity of the primary sector. Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sector. The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is the next step after primary. The product is not produced by nature but has to be made and therefore some process of manufacturing is essential. After primary and secondary, there is a third category of activities that falls under tertiary sector and is different from the above two. These are activities that help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good but they are an aid or a support for the production process. The various production activities in the primary, secondary and tertiary sectors produce a very large number of goods and services. Also, the three sectors have a large number of people working in them to produce these goods and services. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. It is the value of all final goods and services produced within a country during a particular year. GDP shows how big the economy is.Q. Which of the following statement is not true?

Read the extract given below and answer the questions that follows:There are many activities that are undertaken by directly using natural resources. When we produce a good by exploiting natural resources, it is an activity of the primary sector. Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sector. The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is the next step after primary. The product is not produced by nature but has to be made and therefore some process of manufacturing is essential. After primary and secondary, there is a third category of activities that falls under tertiary sector and is different from the above two. These are activities that help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good but they are an aid or a support for the production process. The various production activities in the primary, secondary and tertiary sectors produce a very large number of goods and services. Also, the three sectors have a large number of people working in them to produce these goods and services. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. It is the value of all final goods and services produced within a country during a particular year. GDP shows how big the economy is.Q. Match the following list of occupations with their sectors

Read the extract given below and answer the questions that follows:There are many activities that are undertaken by directly using natural resources. When we produce a good by exploiting natural resources, it is an activity of the primary sector. Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sector. The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is the next step after primary. The product is not produced by nature but has to be made and therefore some process of manufacturing is essential. After primary and secondary, there is a third category of activities that falls under tertiary sector and is different from the above two. These are activities that help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good but they are an aid or a support for the production process. The various production activities in the primary, secondary and tertiary sectors produce a very large number of goods and services. Also, the three sectors have a large number of people working in them to produce these goods and services. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. It is the value of all final goods and services produced within a country during a particular year. GDP shows how big the economy is.Q. Production of a commodity, mostly through ways of manufacturing is an activity of which sector?

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