Notes on Economic Sectors and Development
Economic Sectors: The economy can typically be divided into three main sectors, but AP Human geography breaks it down into five:
Primary Sector: Directly related to natural resource extraction.
Example: Fishing, agriculture, and mining (coal).
These jobs are generally not in high demand in the U.S.
Secondary Sector: Involves manufacturing and processing raw materials into finished products.
Example: Creating furniture from wood or cars from metal.
These jobs are often low-paying and less desired compared to tertiary jobs.
Tertiary Sector: Encompasses services rather than goods.
Example: Healthcare, education, retail, and hospitality.
Jobs here vary widely in pay and education requirements, which are not always indicated by just being in the tertiary sector.
Quaternary Sector: Higher education and knowledge-based jobs.
Example: Research scientists, IT professionals, financial officers.
Quinary Sector: Involves high-level decision making and management.
Example: University presidents, top-level managers in companies.
Sectoral Disparities: Bar graphs indicate that poorer countries have a considerable number of jobs in the primary sector compared to wealthier nations. Important points to note:
In developing regions, agriculture is a significant source of employment, although advances in technology allow for high yields with fewer farmers.
Agricultural Density Concepts: Higher agricultural density generally occurs in less developed countries, signaling lower development levels compared to more developed countries.
Weber's Least Cost Theory: This theory considers three main behaviors in the location of industries:
Bulk-Gaining Industries: Industries that benefit from being close to the market because they add large amounts of weight or value during production, such as soda or automobile assembly.
Bulk-Reducing Industries: Industries that benefit from being close to raw materials because they reduce the volume or weight during production, like lumber milling.
Two Types of Economies:
Formal Economy: Registered businesses that are taxable and contribute to the national GDP; includes legal employment.
Informal Economy: Non-registered businesses, such as babysitting or unreported tips, generally not taxed.
Understanding Economic Growth: As countries develop, the primary sector shrinks and the tertiary and quaternary sectors grow, reflecting improved income levels and job opportunities in education, healthcare, and technology.