(Step 1: Introduction)


Primary-sector output is concerned with the extraction of raw materials and other natural resources. Employment in this sector includes work in agriculture, fishing, mining and oil exploration. The primary sector tends to dominate in less economically developed countries. Allocating more of its resources to agriculture can have several benefits as well as drawbacks.




(Step 2: Discuss how an economy would benefit from allocating more of its resources to agriculture.)




There are several ways an economy would benefit from allocating more of its resources to agriculture;

(1)🌽Allocating more resources towards agriculture can allow the country to specialize in agriculture and enjoy comparative advantage.

The possibility of increased production and consumption through specialisation is made possible because countries can make use of differences in quantities and quality of factors of production, as well as levels of technology, which altogether are called ‘factor endowments’. For example, a country with a tropical climate will find it less costly to produce crops such as coffee or cocoa. Mountainous countries are less well suited to agriculture than countries with fertile plains. Since benefits of specialization include increase in efficiency and productivity, the country can produce more output at competitive prices. This will help boost a country's exports, reducing a current account deficit