Gross Domestic Product(GDP): The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year and the sum of production in the three sectors gives what is called the GDP.
Problem of Double Counting: The problem of double counting arises when the production value of all the products is added to calculate in the National Income as raw material value is also added to it. Hence only the value of the final product should be calculated for the solution.
• It is clear from the above tables that, the secondary and tertiary sectors produce three-fourth of GDP whereas they employ around half the people.
• The contribution of primary sector over the years has decreased but still around half of workers are working in Primary Sector, mainly in agriculture. It means that there are more people in agriculture than is necessary. It is others words, workers in the agricultural sector are underemployed. This kind of underemployment is hidden. It is called Disguised Unemployment.
• We can see that around half of the workers work in the primary sector whereas its contribution is very low (around 15%). The contribution of Secondary and tertiary Sector is around 85% in the GDP but they employ only around half of the workers. There is considerable underemployment in agriculture. There are people who are not employed at all. Considering this situation, there is a need to create more employment.
• There are other ways of classifying economics activities. It can be classified as Public Sector and Private Sector and Organized sector and Unorganized sector.