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Difficulty: EasyMeaning and Types of Production

The extraction of crude oil from the earth is classified as secondary production because it requires industrial machinery.

Answer: Answer

Answer

False. The extraction of crude oil is a primary production activity, not secondary production.
Primary production encompasses all economic activities that extract or harvest natural resources directly from nature, including mining, farming, fishing, and oil drilling. Using machinery during extraction does not change the fundamental nature of the output as an unprocessed raw material.

Step-by-Step Solution

1
Identify the nature of the economic activity described.
Crude oil extraction involves obtaining raw natural resources directly from the environment.
Categorizing production types depends on the stage of resource processing.
2
Classify the activity into the appropriate production sector.
Activities that extract raw natural resources belong to primary production.
Secondary production involves transforming raw materials into manufactured goods, which occurs after extraction.

Key Concept

Types of Production (Primary vs Secondary)
Estimated Time:45s
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Topics

Meaning and Types of Production

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