Question

Which of the following statements concerning the U.S. service sector today is most accurate?

a. It has become the low-wage sector of the U.S. economy.
b. This sector has grown much more rapidly than the manufacturing sector.
c. It focuses less on quality and more on reducing costs of production.
d. The service sector has achieved extremely high productivity gains according to government reports.

Answer 1

The service sector is also known as the tertiary sector: (after agriculture and manufacturing).

In the industrialized countries, and the US is definitely one, the service sector is the leading one and has been growing rapidly.
So the correct answer is b: This sector has grown much more rapidly than the manufacturing sector.

Answer 2

The correct option is B.

The service sector of the US accounts for about two third of the country's economic activities. The manufacturing sector on the other hand account for about 12% of the economic activity, which makes is approximately five times smaller than the service sector. Thus, the service sector of the country is really booming while the manufacturing sector is struggling to stay on its feet.