📚 Learning Guide
Economic Sectors
easy

What is the primary reason for the growth of the tertiary sector in an economy?

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Learning Path

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Choose the Best Answer

A

Increased demand for services due to higher living standards

B

A decrease in the availability of raw materials

C

The decline of manufacturing industries

D

The rise in agricultural productivity

Understanding the Answer

Let's break down why this is correct

Answer

The primary reason for the growth of the tertiary sector in an economy is the increasing demand for services as people become wealthier and lifestyles change. As economies develop, more individuals have disposable income to spend on things like healthcare, education, entertainment, and travel. This shift happens because people often prioritize services that improve their quality of life over producing goods. For example, in a growing city, you might see more restaurants, gyms, and schools opening to cater to the needs of the population. Therefore, as societies evolve, the tertiary sector expands to meet these new demands.

Detailed Explanation

As people earn more money, they want more services. Other options are incorrect because Some might think that fewer raw materials leads to more services; It's a common idea that fewer factories mean more services.

Key Concepts

Economic Sectors
Tertiary Sector Growth
Living Standards
Topic

Economic Sectors

Difficulty

easy level question

Cognitive Level

understand

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