ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Basic: Industry that sells its products outside the community, bringing money into the community Example: Mine supports local economy Non-Basic: Industry that sells its products within the community; it does not bring money into the community Example: Chef in Restaurant recycles money within the community.

Detailed explanation-2: -Non-basic industries consist of primarily small businesses that sell to local customers, including basic and non-basic businesses. Examples of basic businesses include big manufacturing and mining companies, while non-basic businesses include diners, service companies, small consulting companies and convenience stores.

Detailed explanation-3: -They involve the manufacturing, processing, or trading of goods or the providing of services for markets located outside the city’s boundaries. Economic functions of a city servicing nature are called nonbasic functions. They are grocery stores, restaurants, beauty salons are the nonbasic economic activities.

Detailed explanation-4: -Basic industry products are often exported rather than used domestically, and they bring money into the local economy, while non-basic industries simply recirculate the money already available in the local economy.

Detailed explanation-5: -Primary industry. Secondary industry. Tertiary industry. Quaternary industry.