I know that there are primary sector (raw resources) and secondary (manufacturing). The first one is deriving value from land (agriculture or digging stuff up). The second one is creating value by adding work (making chairs out of extracted metal). But service sector sounds like creating value out of thin air.
In: 0
Service economy is one built on labor providing value–you are buying time and expertise. It’s spending money on non-tangible services, experiences, etc. Eating at a restaurant vs. cooking food at home; going to a salon vs. cutting your own hair or painting your nails; having a plumber fix your toilet or mechanic repair your car vs. buying parts and doing it yourself; hiring the expertise of a lawyer, accountant, architect; staying at a hotel or flying someplace; having somebody come clean your house; the daycare center you send your kids to. It’s also things like cell phone plans, TV streaming services, etc. These are part of the service economy and make up a large chunk of where people spend money vs. buying tangible goods.
Latest Answers