Question

With reference to the growth of the service sector globally, consider the following statements:

1. The trend of services dominating GDP was first explained by economists Fisher (1935) and Colin Clark (1940).

2. Service sector growth is measured mainly in terms of its contribution to GDP and employment.

3. In most developing economies, services have always been the largest contributor to GDP.

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

Answer 1

Answer:

A. 1 and 2 only

• The dominance of services in GDP is a recent outcome of development, not something that has "always" happened in developing economies—so statement 3 is wrong.