Economics Chapter 6: Types of Services

What are the main sectors of economic activity, and how do they differ in terms of employment proportions in developed and developing economies?

The main sectors of economic activity are primary, secondary, and tertiary. In developed economies, the majority of workers are employed in the tertiary sector, while a moderate proportion is employed in the secondary sector. In contrast, in developing economies, a larger proportion of people work in the primary sector.

How do tertiary activities differ from primary and secondary activities in terms of output and measurement?

Tertiary activities involve the production of intangible services, which are consumed and indirectly measured in terms of wages and salaries. In contrast, primary and secondary activities involve the production of tangible goods, which are directly measured in terms of quantity and value.

What is the role of manpower in the service sector, and how does it relate to tertiary activities?

Manpower is a crucial component of the service sector, as most tertiary activities are performed by skilled labor, professionally trained experts, and consultants. The quality and availability of manpower determine the effectiveness of tertiary activities.

How do exchange and production relate to tertiary activities, and what are the implications for economic development?

Exchange involves trade, transport, and communication facilities that overcome distance, while production involves the provision of services that are consumed. Both exchange and production are essential components of tertiary activities, which drive economic growth and development. Signup and view all the answers

What are some examples of professionals who provide services in exchange for payment, and how do they contribute to the economy?

Examples of professionals who provide services in exchange for payment include doctors, teachers, lawyers, and consultants. These professionals provide essential services that contribute to the economy by improving health, education, and governance outcomes. Signup and view all the answers

How do tertiary activities relate to the concept of commercial output, and what are the implications for economic development?

Tertiary activities involve the commercial output of services, which are intangible and consumed. This output is essential for driving economic growth and development, particularly in the service sector. Signup and view all the answers

What is the primary factor that determines the mode of transport in a particular route?

Distance, in terms of time or cost Signup and view all the answers

What is the purpose of drawing isochrone lines on a map?

To join places equal in terms of the time taken to reach them Signup and view all the answers

What is the difference between a node and a link in a transport network?

A node is the meeting point of two or more routes, while a link is a road that joins two nodes Signup and view all the answers

Why do wholesalers often extend credit to retail stores?

To enable retailers to operate largely on the wholesaler's capital Signup and view all the answers

How does transportation enhance the value of goods?

By increasing the value of goods at every stage of production, distribution, and consumption Signup and view all the answers

What are the factors that influence transport demand?

Population size, location of cities, pattern of trade, nature of the landscape, type of climate, and funds available for overcoming obstacles Signup and view all the answers

How has the invention of writing impacted communication?

It has made communication dependent on means of transport Signup and view all the answers

What is the significance of telecommunications in modern communication?

It has revolutionized communications by enabling rapid transmission of messages Signup and view all the answers

How has the internet impacted the global communication system?

It has truly revolutionized the global communication system Signup and view all the answers

What is the role of services in the economy?

They occur at many different levels Signup and view all the answers

What are tertiary activities and how do they differ from secondary activities?

Tertiary activities are services that rely on specialized skills, experience, and knowledge of workers, unlike secondary activities which rely on production techniques, machinery, and factory processes. Signup and view all the answers

What is the main purpose of trade in tertiary activities?

The main purpose of trade is to buy and sell items produced elsewhere, with the intention of making a profit. Signup and view all the answers

What are rural marketing centres, and how do they differ from urban marketing centres?

Rural marketing centres cater to nearby settlements, are quasi-urban, and have limited personal and professional services, whereas urban marketing centres have more specialized urban services and provide a wide range of goods and services. Signup and view all the answers

What are periodic markets, and how do they function?

Periodic markets are held at different temporal intervals, usually weekly or bi-weekly, where people from surrounding areas meet their temporally accumulated demand. Signup and view all the answers

What is the difference between retail trading and wholesale trading?

Retail trading is the sale of goods directly to consumers, whereas wholesale trading is the sale of goods in bulk to retailers or other intermediaries. Signup and view all the answers

What are some examples of non-store retail trading?

Examples of non-store retail trading include street peddling, handcarts, trucks, door-to-door, mail-order, telephone, automatic vending machines, and internet. Signup and view all the answers

What is the role of departmental stores in retailing?

Departmental stores delegate the responsibility and authority to departmental heads for purchasing of commodities and overseeing the sale in different sections of the stores. Signup and view all the answers

How do chain stores operate, and what advantages do they have?

Chain stores purchase merchandise economically, often directing the goods to be manufactured to their specification, and employ highly skilled specialists in many executive tasks. Signup and view all the answers

What are the characteristics of urban marketing centres?

Urban marketing centres have widely specialized urban services, providing ordinary goods and services as well as specialized goods and services, including markets for labor, housing, and semi-finished products. Signup and view all the answers

What is the significance of trading centres in the development of tertiary activities?

Trading centres have evolved from local barter to international trade, producing many institutions and centres, and facilitating the exchange of goods and services. Signup and view all the answers

What are the three categories of services that cater to different segments of society?

Industry, people, and both industry and people. Signup and view all the answers

What is the primary difference between low-order services and high-order services?

Low-order services are more common and widespread, while high-order services are more specialized. Signup and view all the answers

What is the primary role of the government in services?

Supervising and controlling the marketing of services such as transport, telecommunication, energy, and water supply. Signup and view all the answers

What is the primary characteristic of recreational and entertainment services in terms of location?

The location depends on the market. Signup and view all the answers

What is the primary purpose of personal services?

To facilitate daily life. Signup and view all the answers

What is the trend in employment in the tertiary sector?

Increasing. Signup and view all the answers

What is the world's single largest tertiary activity in terms of total registered jobs and total revenue?

Tourism. Signup and view all the answers

What is the primary reason for the importance of tourism in Southern Europe and the Mediterranean lands?

The Mediterranean climate offers consistently higher temperatures, long hours of sunshine, and low rainfall throughout the peak holiday season. Signup and view all the answers

What type of services are provided by people employed in tourism?

Services like accommodation, meals, transport, entertainment, and special shops serving tourists. Signup and view all the answers

What is the primary characteristic of tourist regions?

They are often located in scenic landscapes, national parks, and historic towns. Signup and view all the answers

What are the attractions of a region that contribute to its potential for tourism, besides its natural landscape?

history and art, culture and economy Signup and view all the answers

What is the term used to describe the trend of people visiting a country for medical treatment, and which country has emerged as a leader in this field?

medical tourism, India Signup and view all the answers

What are quaternary activities, and what do they involve?

quaternary activities, collection, production, and dissemination of information or production of information Signup and view all the answers

What are the differences between quaternary and quinary activities?

quaternary involves information, quinary involves creation, re-arrangement and interpretation of new and existing ideas Signup and view all the answers

What is the term used to describe the outsourcing of medical tests and data interpretation, and what are its advantages?

outsourcing, improving quality or providing specialized care Signup and view all the answers

What are the benefits of medical tourism for developing countries?

abundant benefits, such as economic growth and development Signup and view all the answers

What is the term used to describe the outsourcing of knowledge-based services, such as research and development?

knowledge processing outsourcing (KPO) Signup and view all the answers

What are the implications of outsourcing on the job seekers in the countries that outsource jobs?

Outsourcing may lead to dissatisfaction among job seekers in the countries that outsource jobs. Signup and view all the answers

What is the alternative to outsourcing that involves providing services from within one's own country?

home shoring Signup and view all the answers

What is the primary difference between BPO and KPO?

BPOs have better business opportunities as compared to KPOs. Signup and view all the answers

What is the driving force behind the continuation of outsourcing, despite resistance from job-seeking youths in outsourcing countries?

comparative advantage Signup and view all the answers

What are quaternary services, and how do they contribute to the economy?

Quaternary services involve specialized knowledge and high-value services, contributing to the economy through high-value job creation and innovation. Signup and view all the answers

What are the benefits of outsourcing for countries that receive outsourced work, such as India and China?

creation of new jobs and reduction of migration Signup and view all the answers

What are the consequences of the digital divide on economic development?

The digital divide can lead to unequal access to opportunities and resources, hindering economic development. Signup and view all the answers

What is the significance of transport and communication services in modern economic development?

Transport and communication services facilitate the exchange of goods and services, enabling economic growth and development. Signup and view all the answers

What is the role of retail trading services in the economy, and how do they contribute to economic development?

Retail trading services provide goods and services to consumers, contributing to economic development through job creation and GDP growth. Signup and view all the answers

What enables companies to create additional business opportunities, and what are some examples of such activities?

KPO (Knowledge Process Outsourcing) enables companies to create additional business opportunities. Examples of KPOs include research and development (R and D) activities, e-learning, business research, intellectual property (IP) research, legal profession, and the banking sector. Signup and view all the answers

What is the significance of the Quaternary Sector in developed economies, and what kind of workers dominate this sector?

The Quaternary Sector, along with the Tertiary Sector, has replaced most of the primary and secondary employment as the basis for economic growth. Over half of all workers in developed economies are in the ‘Knowledge Sector’. Signup and view all the answers

What is outsourcing, and what are some examples of business activities that are commonly outsourced?

Outsourcing is giving work to an outside agency to improve efficiency and reduce costs. Examples of business activities that are commonly outsourced include information technology (IT), human resources, customer support, and call centre services. Signup and view all the answers

What is the digital divide, and what are its implications for countries?

The digital divide refers to the uneven distribution of opportunities emerging from the Information and Communication Technology (ICT) based development across the globe. It has led to wide ranging economic, political, and social differences among countries. Signup and view all the answers

What is the significance of the colour 'White' in the context of the nature of work?

The colour 'White' is associated with the nature of work in the Knowledge Sector, which involves knowledge-intensive activities. Signup and view all the answers

What are quaternary activities, and how do they differ from tertiary activities?

Quaternary activities are high-level knowledge-based activities that involve innovation and intellectual capabilities. They differ from tertiary activities in terms of the level of knowledge and expertise required. Signup and view all the answers

What is the significance of off-shoring in the context of outsourcing, and what are its advantages?

Off-shoring refers to the practice of outsourcing work to overseas locations. Its advantages include lower wages and overhead costs, making it profitable for companies to outsource work. Signup and view all the answers

What are the implications of the digital divide within countries, and how can it be addressed?

The digital divide within countries has significant implications for economic development, social inequality, and access to information. It can be addressed by providing equal access to ICT infrastructure and services to all citizens. Signup and view all the answers

What is the significance of the Quaternary Sector in the context of employment, and what kind of jobs dominate this sector?

The Quaternary Sector provides most of the employment in developed economies, and it is dominated by jobs that involve high degrees and levels of innovation, such as software developers, statisticians, and tax consultants. Signup and view all the answers

What is the relationship between KPO and outsourcing, and how do they benefit companies?

KPO (Knowledge Process Outsourcing) is a type of outsourcing that involves giving knowledge-intensive work to outside agencies. It benefits companies by improving efficiency and reducing costs, and enables them to create additional business opportunities. Signup and view all the answers