Chapter 3.5, Problem 1RQ

To determine

The definition of sectoral transformation and the way in which it helps to explain the economic change in North America.

Answer to Problem 1RQ

The evolution of the labor force of a nation from one reliant on the primary sector to one with more employment in the secondary, tertiary, and quaternary sectors is defined as sectoral transformation. The economic change of North America could be elucidated based on this concept. In the beginning, North America had much of its workers employed in the primary sectors. After that, from late $1800\text{s}$ onward, several workers got employed in the secondary sector. Over the $20\text{th}$ century, the secondary sector weakened, meanwhile the tertiary and quaternary sectors became dominant.

Explanation of Solution

The changes in the employment structure of North America guided the country to the path of increased economic growth. The concept of its people shifting from primary sectors to secondary, tertiary, and quaternary sectors could be explained based on the concept of sector transformation. It represents the progression of the labor force of a nation from one reliant on the primary sector to one having increased employment opportunity in the secondary, tertiary, and quaternary sectors.

The primary sectors usually deal with the extraction of natural resources or agricultural activities. Much of the people of North America initially relied on agriculture as their source of livelihood. Most of those activities were based on man power at the outset. Later from $1800\text{s}$, when technologies became so common and available and development in terms of transportation and machinery became popular, the primary sector declined as people got better jobs in the secondary sector. Agriculture turned out to be a much easier process, and the farmers found it easy to take their products to the markets that are nearby or even far away due to improved transportation facilities.

Afterward, with the introduction of the tertiary sector that majorly deals with services and quaternary sector that deals with information services, the employment opportunities hiked in these sectors driving in more people to these sectors. With the advancement in all facilities, the country had a good economic growth.