AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
(B) Whether the activity uses natural resources, manufactures goods, or provides services.
Farming, fishing, and mining use natural resources → Primary sector; manufacturing transforms natural products → Secondary sector. The basis is the nature of the activity.
The textbook explicitly states that primary, secondary, and tertiary sectors are classified on the basis of "nature of activity". Farming, fishing, and mining are primary (natural resource-based); manufacturing is secondary (industrial). Option B best captures this. Examiners expect you to recall the criterion used for this specific classification.
Source: Sectors of Economic Activities, Chapter 2; Let's Recall, Chapter 2.