What characterizes the tertiary sector?

The tertiary sector is primarily characterized by the provision of services rather than the production of physical goods or raw materials. This sector includes a wide range of activities that serve consumers and other businesses, such as retail, healthcare, education, financial services, hospitality, and more. The focus here is on delivering intangible products that enhance the quality of life or facilitate the functioning of other economic activities rather than creating tangible items.

In contrast, the other options relate to different sectors of the economy. The creation of physical goods pertains to the secondary sector, where manufacturing and industrial production occur. Engagement with agriculture and raw materials is characteristic of the primary sector, which involves the extraction and production of raw materials. Lastly, the manufacturing of products in factories also falls under the secondary sector. Thus, provision of services is what distinctly defines the tertiary sector, making it the correct choice.