In which of the following ways output in tertiary sector is measured ?

The correct answer is Option 1: Indirectly measured in terms of wages and salaries

The tertiary sector (or service sector) includes activities like teaching, banking, healthcare, transportation, etc. Unlike the primary and secondary sectors, where output can be measured in physical units (like tons of wheat or number of machines), services are intangible and cannot be measured directly.

As a result, the output in the tertiary sector is usually measured indirectly, and the most common method is to use wages and salaries paid to the workers in the sector as a proxy for the value of services produced.