Question

Which of the following best characterizes the service sector compared to the industrial sector?

1. Output is intangible and cannot be stored physically.

2. Strong dependence on human interaction and knowledge.

3. Output is mainly tangible products manufactured from raw materials.

• A. 1 only
• B. 1 and 2 only
• C. 1 and 3 only
• D. 2 and 3 only

Answer 1

Answer:

B. 1 and 2 only

• Services are intangible, interaction-based, and knowledge-driven. Manufacturing of tangible goods belongs to the secondary sector, not services.