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.