Final answer:
Microsoft Office Word and Excel are categorized as application software, which serve specific user tasks. They differ from utility and operating system software. Software developers work in the economy's tertiary sector.
Step-by-step explanation:
Microsoft Office Word and Excel both belong to the category of application software. Application software is designed to perform specific tasks for users, such as word processing with Microsoft Word and managing spreadsheets with Microsoft Excel. In contrast, utility software is designed to help manage and tune the computer hardware, system software, or application software. Operating system software, like Microsoft Windows, is used to manage the hardware and create the basic framework upon which all other software runs. Moreover, a software developer typically works in the tertiary sector of an economy which is concerned with services rather than the production of goods.