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With so many activities taking place around us, one needs to use the process of classification to think in a useful manner. The criterion for classification could be many depending on what we desire to find out. The process of classification helps to analyse a situation.
In dividing the economic activities into three sectors — primary, secondary, tertiary — the criterion used was the ‘nature of activity’. On the basis of this classification, we were able to analyse the pattern of total production and employment in India. Similarly, we divided the economic activities into organised and unorganised and used the classification to look at employment in the two sectors. What was the most important conclusion that was derived from the classification exercises?
What were the problems and solutions that were indicated? Can you summarise the information in the following table?
Table 2.4 Classifying Economic Activities
Table 2.4 Classifying Economic Activities