At higher levels of development, which sector of the economy contributes less to the GDP?

The correct option is Agriculture sector.

As an economy reaches higher levels of development, a structural transformation takes place in the composition of its Gross Domestic Product (GDP):

1. Primary Sector (Agriculture): In the early stages of development, agriculture forms the primary component of GDP and employment. However, as an economy matures, the relative contribution of agriculture to total GDP decreases significantly, even though total agricultural output in absolute terms may rise.
2. Secondary & Tertiary Sectors (Industry & Services): Higher development brings expansion in technology, industrial production, and services. In advanced economies, the service sector grows rapidly and becomes the dominant contributor to GDP.

Therefore, at higher levels of development, the Agriculture sector contributes less to the GDP compared to the other sectors of the economy.