The correct answer is option 1: organized and unorganized sectors.

The economy can be divided into organized and unorganized sectors based on the employment conditions.

The organized sector refers to businesses and industries that are registered, regulated, and have a formal structure. This sector typically consists of large corporations, government organizations, and public sector enterprises. They provide formal employment opportunities and adhere to labor laws and regulations.

On the other hand, the unorganized sector consists of small and informal businesses, self-employed individuals, and casual laborers. These businesses are usually not registered and don`t have a formal structure. They operate in areas such as agriculture, small-scale manufacturing, street vending, and domestic work. The employment conditions in the unorganized sector are often characterized by low wages, lack of social security, and limited access to benefits and protections.

Therefore, option 1 is the correct answer as it correctly identifies the two main sectors of the economy based on employment conditions.