Deck 1: The Role of Services in an Economy

Question 1

Illustrate how the type of work that he or she does influences a person's lifestyle. For example, contrast a farmer, a factory worker, and a schoolteacher.

Answer 1

A person's lifestyle is shaped by his attitude, beliefs, value, culture as well as the type of work he or she does. Person's job affects their decision making, dressing and their demand pattern.
Below table states some of the factors that are affected by an individual's work or job:
Therefore, from the above table one can conclude that an individual affects their lifestyle.

Question 2

Is it possible for an economy to be based entirely on services ?

Answer 2

Economy:
The economy of a country is the way in which the production, distribution and consumption of different goods and services. It is the study of how money flows in an economy.
Service:
The economy is based on three sectors. They are: Primary sector, Secondary sector and Tertiary sector. The primary sector is also known as agricultural sector, secondary sector is also known as industrial sector and tertiary sector is also known as service sector. It can be observed that the service sector is eventually increasing its contribution in the economy of any country. Moreover, the contribution of primary sector and secondary sector has been decreasing over a period of time. The contribution of service sector will increase only when there are products and services in the economy. So, an economy that is completely based on services is not practically possible however, the service sector may contribute a large portion to the economy of a country. But such an economy will not be productive or profitable. Thus, it is better to maintain a balance among all the three sectors of the economy.

Question 3

What is the value of self-service in an economy?

Answer 3

Economy:
The economy of a country is the way in which the production, distribution and consumption of different goods and services. It is the study of how money flows in an economy.
Self-Service:
The economy is based on three sectors. They are: Primary sector, Secondary sector and Tertiary sector. The primary sector is also known as agricultural sector, secondary sector is also known as industrial sector and tertiary sector is also known as service sector. It can be observed that the service sector is eventually increasing its contribution in the economy of any country.
Self-service is an economy in which a large proportion of household expenditure is invested in durable goods. It helps the consumers to produce services for themselves than to buy services. The value of self-service is it helps to improve the relationship and performance between the customers and the company. This helps in improving the performance of the service sector and increasing its contribution to the economy.

Question 4

Go to the Internet and find the percent employment in services over the past 40 years for a country not listed in Table 1.1.

Question 5

Go to Wikipedia.com and search under the topic of "service economy." What do you make of the data plotted on the world map?

Question 6

Determine if the U.S. service sector is currently expanding or contracting based upon the Non-Manufacturing Index (NMI) found at ISM Report on Business on the Institute of Supply Management website: http://www.ism.ws/pubs/ismmag/.