Choose whether the given statement is true or false.

Classification of economic activities into primary, secondary and tertiary is useful.

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True

False

answer is A.

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Detailed Solution

The above statement is true.
The economic activities, based on the type of work, are broadly divided into three parts: primary, secondary and tertiary. Such classification is helpful as it helps ascertain the contribution of each sector to GDP and per capita income. It also helps the government determine policies based on the situation of the sectors. For example, the tertiary sector in India is growing fast, but the secondary sector is still lagging.

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