Why is the Tertiary Sector considered essential for improving income standards in modern economies? A It provides direct services to consumers and supports luxury spending. B It focuses on transforming raw materials into high-value goods. It includes intellectual activities like research and development. D It ensures the efficient extraction of renewable and non-renewable resources.

The correct answer is C. The Tertiary Sector is considered essential for improving income standards in modern economies because it includes intellectual activities like research and development. The Tertiary Sector, also known as the service sector, encompasses industries that provide services rather than goods. This includes activities such as education, healthcare, finance, real estate, and research and development. By focusing on intellectual activities like research and development, the Tertiary Sector drives innovation, creates high-value jobs, and contributes to economic growth. This, in turn, leads to improved income standards for individuals and societies.