Consider the following statements regarding the 'Tertiary Sector': 1. It includes activities like agriculture and mining. 2. Activities in this sector generate services rather than goods. 3. These activities add value to the national income. Which of the following statements are correct ?

Correct Option The correct option is (c). Explanation The economy is structurally divided into three main sectors based on the nature of economic activities: the Primary Sector (extraction of natural resources), the Secondary Sector (manufacturing and industrial production), and the Tertiary Sector (provision of services). Statement-wise Analysis - Statement 1 is Incorrect: Activities such as agriculture, mining, fishing, and forestry involve the direct extraction or utilization of natural resources. These fall under the Primary Sector. The Tertiary Sector does not deal with the extraction of raw materials. - Statement 2 is Correct: The Tertiary Sector is characterized by the generation of services rather than tangible goods. It includes activities such as transport, communication, banking, trade, and storage, which support the functioning of the primary and secondary sectors. - Statement 3 is Correct: Economic activities within the Tertiary Sector involve monetary transactions and the creation of utility through services. These activities contribute to the Gross Domestic Product (GDP) and strictly add value to the national income. Key Takeaway: The Tertiary Sector, also known as the Service Sector, encompasses activities that produce intangible value (services) rather than physical goods, serving as a major component of National Income.

NCERT Class 9 Economics — Chapter 2: People as Resource

mcqmedium

Consider the following statements regarding the 'Tertiary Sector':

It includes activities like agriculture and mining.
Activities in this sector generate services rather than goods.
These activities add value to the national income.

Which of the following statements are correct ?

Official previous-year question

Verified 1 Aug 2026.

Options

A1 and 2 only
B2 only
C2 and 3 only
D1, 2 and 3

Did you get this right?

Solution

Correct Option

The correct option is (c).

Explanation

The economy is structurally divided into three main sectors based on the nature of economic activities: the Primary Sector (extraction of natural resources), the Secondary Sector (manufacturing and industrial production), and the Tertiary Sector (provision of services).

Statement-wise Analysis

Statement 1 is Incorrect: Activities such as agriculture, mining, fishing, and forestry involve the direct extraction or utilization of natural resources. These fall under the Primary Sector. The Tertiary Sector does not deal with the extraction of raw materials.
Statement 2 is Correct: The Tertiary Sector is characterized by the generation of services rather than tangible goods. It includes activities such as transport, communication, banking, trade, and storage, which support the functioning of the primary and secondary sectors.
Statement 3 is Correct: Economic activities within the Tertiary Sector involve monetary transactions and the creation of utility through services. These activities contribute to the Gross Domestic Product (GDP) and strictly add value to the national income.

Key Takeaway: The Tertiary Sector, also known as the Service Sector, encompasses activities that produce intangible value (services) rather than physical goods, serving as a major component of National Income.

Your note

More from Chapter 2: People as Resource

Consider the following statements regarding 'Human Capital': 1. Human capital refers solely to the physical strength of the population. 2. Investment in human capital yields a return just like investment in physical capital. 3. It is considered superior to other resources like land and physical capital because it can make use of them. Which of the following statements are correct ?

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With reference to the classification of economic activities, consider the following 1. Mining and quarrying are classified under the primary sector. 2. Transport and communication are considered part of the primary sector. 3. Activities in the primary sector do not contribute to the national income. Which of the following statements are correct ?

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Consider the following statements regarding 'Market' and 'Non-Market' activities: 1. Market activities involve remuneration to anyone who performs the activity for pay or profit. 2. Government services are excluded from market activities. 3. Non-market activities are primarily for self-consumption and processing of primary products. Which of the following statements are correct ?

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Which of the following best describes the 'Virtuous Cycle' of human capital formation?

easy

Consider the following statements regarding the 'Sarva Shiksha Abhiyan': 1. It is a significant step towards providing elementary education to all children. 2. It focuses exclusively on higher education in universities. 3. It is a scheme implemented only in metropolitan cities. Which of the following statements are correct ?

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Correct Option

The correct option is (c).

Explanation

Statement-wise Analysis

Statement 1 is Incorrect: Activities such as agriculture, mining, fishing, and forestry involve the direct extraction or utilization of natural resources. These fall under the Primary Sector. The Tertiary Sector does not deal with the extraction of raw materials.
Statement 2 is Correct: The Tertiary Sector is characterized by the generation of services rather than tangible goods. It includes activities such as transport, communication, banking, trade, and storage, which support the functioning of the primary and secondary sectors.
Statement 3 is Correct: Economic activities within the Tertiary Sector involve monetary transactions and the creation of utility through services. These activities contribute to the Gross Domestic Product (GDP) and strictly add value to the national income.