The economic activities have been divided into mainly three classes. They are – Primary, Secondary, and Tertiary. Primary activities includes – agriculture, fishing and forestry. Secondary activities includes – industry ( manufacturing and construction ). Tertiary activities includes services. Up to the industrial revolution, agriculture was dominated in economic sector. After the industrial revolution, industry started to dominate the economy and presently service sector dominate the whole economy of world. The economic growth is not equal in all countries. In many Asian and African countries, agriculture is still the dominant factor of their economies. At the same time there are some countries with industry as the dominant factor of their economies.
Service
According to the economic point of view a service is an intangible commodity. That is, services are an example of intangible economic goods. A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to physical product.
Examples:
· Education service
· Insurance service
· Banking service
· Film Theater
· Medical service
· Telecommunication service
· Legal service
The Service Economy
Presently the world economy is increasingly characterized as a service economy. This is primarily due to the increasing importance and share of the service sector in the economies of most developed and developing countries. In fact, the growth of the service sector has long been considered as an indicator of a country’s economic progress. Economic history tells us that all developing nations have invariably experienced a shift from agriculture to industry and then to the service sector as the mainstay of the economy. This shift has also brought about a change in the definition of goods and services themselves. The service sector is going through revolutionary change, which dramatically affects the way in which we live and work. New services are continually being launched to satisfy our existing needs and to meet needs that we did not even know we had. Nearly fifty years ago, when the first electronic file sharing system was created, few people likely anticipated the future demand for online banking, website hosting, or email providers. Today, many of us feel we can’t do without them. Similar transformations are occurring in business-to-business markets.
