Question 1 Report
The table below shows the value added by three sectors in the economy of Bellavista in 2026.
| Sector | Value added, billion belas |
|---|---|
| Primary | 18 |
| Secondary | 47 |
| Tertiary | 85 |
(a) Calculate total value added in Bellavista. [2]
(b) State the sector with the largest contribution to total output. [1]
(c) Explain one reason why many higher-income economies have a large tertiary sector. [2]
(a) Total value added is found by adding the value added of all three sectors:
\[18 + 47 + 85 = 150\]
Total value added is 150 billion belas. [2 marks]
(b) The tertiary sector, or services sector, makes the largest contribution because its value added is 85 billion belas, greater than the other sectors. [1 mark]
(c) In higher-income economies, consumers have more disposable income after meeting basic needs. This increases demand for services such as finance, health care and tourism. Firms respond to this demand by employing more workers and other resources in services, making the tertiary sector larger. [2 marks]
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