Correct Option
The correct option is (a) 1 only.
Explanation
Economic activities are broadly classified into three sectors based on the nature of the activity: Primary, Secondary, and Tertiary. This structural composition helps in analyzing the contribution of different activities to the economy.
Statement-wise Analysis
- Statement 1 is Correct: The primary sector includes all activities undertaken by directly using natural resources. Since mining and quarrying involve the extraction of natural resources from the earth, they are classified under the primary sector, alongside agriculture, forestry, and fishing.
- Statement 2 is Incorrect: Transport, communication, trade, and banking are activities that generate services rather than goods. These activities aid in the development of the primary and secondary sectors and are classified under the tertiary sector (service sector).
- Statement 3 is Incorrect: National Income is the total value of all final goods and services produced in an economy during a financial year. Activities in the primary sector involve economic production and value addition; therefore, they are an integral component of the National Income (GDP).
Key Takeaway: The Primary Sector involves the extraction of natural resources (e.g., agriculture, mining), the Secondary Sector involves manufacturing and processing, and the Tertiary Sector involves the provision of services (e.g., transport, banking).