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11.4.3—Economic structure

Syllabus
9708–2026–2027
Objective
11.4.3
Level
A2

Economic structure changes as output and employment move across sectors

Economic structure is the composition of an economy’s production and employment, often described through primary, secondary and tertiary sectors and the activities within them.

Development may involve structural transformation from low-productivity agriculture toward manufacturing and services, but the path depends on technology, resources, trade, institutions and domestic demand. Productivity can rise within a sector too.

A country can reduce agricultural employment while raising farm output through mechanisation, then expand service jobs such as logistics and finance.

A larger service sector is not automatically more productive or more developed, and sector shares do not show job quality or distribution by themselves.

ConceptA-Level CAIE Economics A2