📚 Learning Guide
Economic Sectors
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In the context of economic sectors, which of the following statements best illustrates the role of the secondary sector in contributing to the overall value added in an economy?

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Choose the Best Answer

A

The secondary sector focuses solely on the extraction of raw materials, contributing less to value added.

B

The secondary sector includes manufacturing and construction, which transform raw materials into finished goods, thereby increasing value added.

C

The secondary sector primarily relies on service-based industries to enhance its value added.

D

The secondary sector's contribution to value added is negligible compared to the primary sector.

Understanding the Answer

Let's break down why this is correct

Answer

The secondary sector of the economy involves manufacturing and processing, where raw materials are turned into finished goods. This sector adds value by taking basic materials, like iron ore or cotton, and transforming them into products that people can use, such as cars or clothing. For example, when a factory takes steel and makes it into a car, it not only creates a product that can be sold but also contributes to jobs, incomes, and economic growth. By increasing the worth of these materials and creating new products, the secondary sector plays a crucial role in boosting the overall value of the economy. In this way, it helps to enhance the standard of living by providing goods that people need and want.

Detailed Explanation

The secondary sector is all about making things. Other options are incorrect because This answer confuses the secondary sector with the primary sector; This option mixes up sectors.

Key Concepts

secondary sector
value added by sectors
Topic

Economic Sectors

Difficulty

medium level question

Cognitive Level

understand

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