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The NAICS Uses a Five Digit Hierarchical Coding System to Classify

Question 36

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The NAICS uses a five digit hierarchical coding system to classify all economic activity into 20 industry sectors,providing greater flexibility relative to SIC codes.A total of 15 of these sectors are devoted to services-producing sectors,compared to only 5 that are mainly goods-producing sectors.NAICS allows for identification of 1,170 industries.It includes 9 new service sectors and 250 new service industries.

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