Comprehension
Passage:
The Quaternary Sector along with the Tertiary Sector has replaced most of the primary and secondary sectors on the basis of economic growth. More than half of workers in developed economies are in the services sector. Knowledge-oriented services are growing due to the demand for consumption of information-based services from mutual fund managers to tax consultants, software engineers and statisticians. Personnel working in office buildings, elementary schools and university classrooms, hospitals and doctors’ offices, theatres, accounting and brokerage firms all belong to this category of services. Like some of the tertiary functions, quaternary activities can also be outsourced. They are not tied to resources, affected by the environment, or necessarily localised by market.
The Quaternary Sector along with the Tertiary Sector has replaced most of the primary and secondary sectors on the basis of economic growth. More than half of workers in developed economies are in the services sector. Knowledge-oriented services are growing due to the demand for consumption of information-based services from mutual fund managers to tax consultants, software engineers and statisticians. Personnel working in office buildings, elementary schools and university classrooms, hospitals and doctors’ offices, theatres, accounting and brokerage firms all belong to this category of services. Like some of the tertiary functions, quaternary activities can also be outsourced. They are not tied to resources, affected by the environment, or necessarily localised by market.
Question: 1
Define the concept of ``outsourcing''
Define the concept of ``outsourcing''
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Outsourcing = Work done by external agencies (often global).
Updated On: Feb 26, 2026
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Solution and Explanation
Concept:
Outsourcing is an important feature of modern service economies, especially in tertiary and quaternary sectors.
Answer:
Outsourcing refers to the practice of obtaining services or work from an external source, often from another country or specialised agency, instead of producing them internally. It is commonly used in knowledge-based and service industries to reduce costs and improve efficiency.
Outsourcing refers to the practice of obtaining services or work from an external source, often from another country or specialised agency, instead of producing them internally. It is commonly used in knowledge-based and service industries to reduce costs and improve efficiency.
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Question: 2
More than 50 percent of all workers in developed countries belong to which sector of economy?
More than 50 percent of all workers in developed countries belong to which sector of economy?
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Developed countries → Service-dominated economies.
Updated On: Feb 26, 2026
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Solution and Explanation
Step 1:Refer to the passage.
The passage clearly states that more than half of workers in developed economies are employed in the services sector.
Step 2:Conclusion.
This refers to the tertiary (and quaternary) sector collectively known as the service sector. Answer:
More than 50% of workers in developed countries belong to the service sector (tertiary sector).
The passage clearly states that more than half of workers in developed economies are employed in the services sector.
Step 2:Conclusion.
This refers to the tertiary (and quaternary) sector collectively known as the service sector. Answer:
More than 50% of workers in developed countries belong to the service sector (tertiary sector).
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Question: 3
Mutual fund managers are demanding which type of services?
Mutual fund managers are demanding which type of services?
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Quaternary sector = Knowledge + Information services.
Updated On: Feb 26, 2026
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Solution and Explanation
Step 1:Locate the relevant line.
The passage mentions that knowledge-oriented services are growing due to the demand for information-based services from mutual fund managers and others.
Step 2:Identify the service type.
These are knowledge-based and information-driven services belonging to the quaternary sector. Answer:
Mutual fund managers are demanding knowledge-based or information-based (quaternary) services.
The passage mentions that knowledge-oriented services are growing due to the demand for information-based services from mutual fund managers and others.
Step 2:Identify the service type.
These are knowledge-based and information-driven services belonging to the quaternary sector. Answer:
Mutual fund managers are demanding knowledge-based or information-based (quaternary) services.
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