With reference to the "Tertiary Sector", consider the following statements: 1. It involves the direct extraction of natural resources. 2. Transport, storage, and banking are examples. 3. It generates services rather than goods. Which of the statements given above is/are correct?

The correct option is 2 and 3 only. Explanation The economy is structurally divided into three main sectors based on the nature of economic activities: Primary, Secondary, and Tertiary. The Tertiary Sector, also known as the Service Sector, is characterized by activities that support the production process and provide essential services to consumers and other sectors. Statement-wise Analysis: - Statement 1 is Incorrect: The direct extraction and utilization of natural resources define the Primary Sector. Examples include agriculture, mining, fishing, and forestry. The Tertiary Sector does not involve the extraction of raw materials. - Statement 2 is Correct: The Tertiary Sector encompasses activities that aid in the development of the primary and secondary sectors. Transport, storage, communication, banking, and trade are classic examples of tertiary activities, as they facilitate the movement and financing of goods rather than their production. - Statement 3 is Correct: Unlike the Primary and Secondary sectors, which produce tangible goods (raw materials and finished products, respectively), the Tertiary Sector generates services. These are intangible economic activities that add value through expertise, convenience, or utility. Key Takeaway: The Tertiary Sector does not produce physical goods but provides the necessary services (such as logistics, finance, and administration) required to sustain the Primary and Secondary sectors.

NCERT Class 10 Economics — Chapter 2: Sectors of the Indian Economy

mcqeasy

With reference to the "Tertiary Sector", consider the following statements:

It involves the direct extraction of natural resources.
Transport, storage, and banking are examples.
It generates services rather than goods.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A2 and 3 only
B1, 2 and 3
C1 and 2 only
D2 only

Did you get this right?

Solution

The correct option is 2 and 3 only.

Explanation

The economy is structurally divided into three main sectors based on the nature of economic activities: Primary, Secondary, and Tertiary. The Tertiary Sector, also known as the Service Sector, is characterized by activities that support the production process and provide essential services to consumers and other sectors.

Statement-wise Analysis:

Statement 1 is Incorrect: The direct extraction and utilization of natural resources define the Primary Sector. Examples include agriculture, mining, fishing, and forestry. The Tertiary Sector does not involve the extraction of raw materials.
Statement 2 is Correct: The Tertiary Sector encompasses activities that aid in the development of the primary and secondary sectors. Transport, storage, communication, banking, and trade are classic examples of tertiary activities, as they facilitate the movement and financing of goods rather than their production.
Statement 3 is Correct: Unlike the Primary and Secondary sectors, which produce tangible goods (raw materials and finished products, respectively), the Tertiary Sector generates services. These are intangible economic activities that add value through expertise, convenience, or utility.

Key Takeaway:

The Tertiary Sector does not produce physical goods but provides the necessary services (such as logistics, finance, and administration) required to sustain the Primary and Secondary sectors.

Your note

More from Chapter 2: Sectors of the Indian Economy

Consider the following statements regarding the "Service Sector" growth: 1. New services based on information and communication technology have become important. 2. The entire service sector is growing rapidly, providing high incomes to all workers. 3. All workers in the service sector earn high incomes and enjoy job security. Which of the statements given above is/are correct?

medium

Consider the following statements regarding the "GDP" of India: 1. It shows how big the economy is. 2. It is the sum of the value of intermediate goods produced in the three sectors. 3. It excludes the value of goods and services produced by Indians outside the country. Which of the statements given above is/are correct?

medium

Consider the following statements regarding "Disguised Unemployment": 1. It happens when people are visibly unemployed. 2. It is common in the agricultural sector. 3. Removing a few workers from the sector does not affect total production. Which of the statements given above is/are correct?

medium

Consider the following statements regarding the "Unorganised Sector" workers in urban areas: 1. Workers in small-scale industry are always covered under the organised sector. 2. They include casual workers in construction, trade, and transport. 3. Street vendors are considered part of the formal service sector. Which of the statements given above is/are correct?

easy

Consider the following statements regarding the "Primary Sector": 1. It forms the base for all other products. 2. It is unrelated to agriculture and allied activities. 3. It includes activities like mining and forestry. Which of the statements given above is/are correct?

easy

Keep practising Chapter 2: Sectors of the Indian Economy

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The correct option is 2 and 3 only.

Explanation

Statement-wise Analysis:

Statement 1 is Incorrect: The direct extraction and utilization of natural resources define the Primary Sector. Examples include agriculture, mining, fishing, and forestry. The Tertiary Sector does not involve the extraction of raw materials.
Statement 2 is Correct: The Tertiary Sector encompasses activities that aid in the development of the primary and secondary sectors. Transport, storage, communication, banking, and trade are classic examples of tertiary activities, as they facilitate the movement and financing of goods rather than their production.
Statement 3 is Correct: Unlike the Primary and Secondary sectors, which produce tangible goods (raw materials and finished products, respectively), the Tertiary Sector generates services. These are intangible economic activities that add value through expertise, convenience, or utility.

Key Takeaway:

The Tertiary Sector does not produce physical goods but provides the necessary services (such as logistics, finance, and administration) required to sustain the Primary and Secondary sectors.