What term describes the conditions under which services replace goods as the economic focus?

What term describes the conditions under which services replace goods as the economic focus?

• A. Service-oriented economy
• B. Goods-based economy
• C. Mixed economy
• D. Monetary economy

Answer: (A)

The term that accurately describes the conditions under which services replace goods as the economic focus is a service-oriented economy. This concept refers to a significant shift in economic activities from the production and consumption of tangible goods to the provision and consumption of services. In such an economy, industries that provide services—such as healthcare, education, finance, and entertainment—grow in prominence and can contribute more significantly to GDP than traditional goods-producing sectors. This evolution reflects changes in consumer preferences, technological advancements, and greater importance placed on experiences over material possessions. The other options do not capture this specific transition as effectively. A goods-based economy focuses on the production of physical items, a mixed economy combines elements of both goods and services but does not emphasize one over the other, and a monetary economy primarily refers to an economy's reliance on currency and financial transactions rather than on the type of goods or services provided. Each of these terms highlights different aspects of economic structure but does not encapsulate the service-centric transformation described.

The term that accurately describes the conditions under which services replace goods as the economic focus is a service-oriented economy. This concept refers to a significant shift in economic activities from the production and consumption of tangible goods to the provision and consumption of services.

In such an economy, industries that provide services—such as healthcare, education, finance, and entertainment—grow in prominence and can contribute more significantly to GDP than traditional goods-producing sectors. This evolution reflects changes in consumer preferences, technological advancements, and greater importance placed on experiences over material possessions.

The other options do not capture this specific transition as effectively. A goods-based economy focuses on the production of physical items, a mixed economy combines elements of both goods and services but does not emphasize one over the other, and a monetary economy primarily refers to an economy's reliance on currency and financial transactions rather than on the type of goods or services provided. Each of these terms highlights different aspects of economic structure but does not encapsulate the service-centric transformation described.