In an economy, there could be one or more sectors which are dominant in terms of total production and employment, while other sectors are relatively small in size. Therefore, Comparison can be done among these three sectors on the basis of value of final goods and services produced.
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 these sectors gives us gross domestic product (GDP) of a country.
Historical Chane in Sectors: The importance of sectors has changed, At the initial stages of development, primary sector was the most important sector of economic activity but over a period of time Secondary sector gradually became the most important in total production and employment. But there has been a further shift from secondary to tertiary sector in developed countries. The service sector has become the most important in terms of total production.
