Which phrase captures the expansion of IT, finance, and outsourcing industries?

• A. Oil-Based Economy
• B. Emerging Market
• C. Service Sector Growth
• D. Export Processing Zones (EPZs)

Answer: (C)

The key idea is the shift toward a service-dominated economy, where growth comes from activities that provide services rather than produce goods. IT, finance, and outsourcing are all service-oriented industries, so their expansion signals that the economy is expanding its service sector. This contrasts with manufacturing or resources-driven growth, and it reflects how many advanced and developing economies increasingly rely on knowledge, information, and service delivery to drive prosperity.

Oil-based economies hinge on petroleum revenue, which doesn’t capture the idea of broad service growth. An emerging market describes a country’s development stage, not the sectoral mix. Export Processing Zones typically focus on manufacturing for export, not on expanding services like IT or financial services.