Which term describes an economy in which manufacturing is no longer the dominant activity?

• A. Postindustrial Economy
• B. Service-Dominated Economy
• C. Agricultural Economy
• D. Industrial Economy

Answer: (A)

The main idea is the shift from producing goods to delivering services and knowledge-based activities, so manufacturing is no longer the main driver of the economy. This situation is described as a postindustrial economy. In such economies, services like finance, healthcare, education, and information technology become the larger share of output and employment, while manufacturing declines in relative importance due to automation, outsourcing, and changing demand. An agricultural economy relies on farming, and an industrial economy centers on manufacturing as the dominant activity; a service-dominated economy points to the growth of services but the established term that captures the broader transition away from manufacturing is postindustrial.