Question

What distinguishes a knowledge economy from a traditional industrial economy?

1. The primary focus shifts from tangible assets to intangible assets like knowledge and information.
2. Skills and continuous learning become less important.
3. Innovation and technological advancement are central drivers of growth.
4. Economic development is primarily based on the exploitation of natural resources.

• A. i, iii
• B. ii, iv
• C. None of these
• D. iii only

Answer 1

Answer:

A. i, iii

• The transition to a knowledge economy signifies a fundamental shift from economies driven by physical capital and natural resources to those propelled by knowledge, information, and human capital.

• Intangible assets, such as intellectual property, research, and skilled labor, become the primary sources of value creation and competitive advantage.

• Continuous learning, innovation, and the effective application of knowledge are crucial for economic progress.

• This contrasts sharply with traditional industrial economies, where the emphasis was often on manufacturing, resource extraction, and standardized production.