Question

Read the given passage carefully and answer the questions that follow:

The Quaternary Sector The Quaternary Sector along with the Tertiary Sector has replaced most of the primary and secondary employment as the basis for economic growth. Over half of all workers in developed economies are in the ‘Knowledge Sector’ and there has been a very high growth in demand for consumption of information-based services from mutual fund managers to tax consultants, software developers 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.

1. Define the concept of ‘outsourcing’. (1)
2. More than 50 percent of all workers in developed countries belongs to which sector of economy? (1)
3. ‘Mutual funds managers’ are demanding which type of services? (1)

Answer 1

1. Outsourcing is the practice of contracting out specific business functions or activities to external agencies or service providers to improve efficiency or reduce costs.
2. More than 50 percent of all workers in developed countries are in the ‘Knowledge Sector’, which includes the Quaternary and Tertiary sectors.
3. Mutual fund managers are demanding information-based services.