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At higher levels of development, which sector of the economy contributes less to the GDP?

  1. A
    Industrial sector
  2. B
    Service sector
  3. C
    Both service and agriculture sector
  4. D
    Agriculture sector

Solution & Step-by-step Explanation

As an economy progresses through higher levels of economic development, it undergoes a structural transformation.
* Initially, the primary sector (Agriculture sector) dominates employment and GDP.
* With industrialisation and technological advancement, economic activities transition first towards the secondary (Industrial) and then heavily towards the tertiary (Service) sector.
Consequently, while the absolute agricultural output might increase, its relative share/percentage contribution* to the total Gross Domestic Product (GDP) continuously declines, making it the sector contributing the least at advanced development stages.

Practice this question

Try it yourself before checking the explanation above.

At higher levels of development, which sector of the economy contributes less to the GDP?
A
Industrial sector
B
Service sector
C
Both service and agriculture sector
D
Agriculture sector

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