Which term describes a system in which much of the workforce works not in the physical production of material goods but in their design, marketing, sale and servicing?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Knowledge economy
Option (1) Weightless economy — Incorrect. A weightless economy is defined by its products, which have their base in information, such as software and media. Where the workforce is engaged is the mark of a different term.
Option (2) Knowledge economy — Correct. A knowledge economy is one where much of the workforce works not in the physical production or distribution of goods. People work in their design, development, technology, marketing, sale and servicing.
Option (3) Electronic economy — Incorrect. The electronic economy lets banks, firms and investors shift funds across countries with the click of a mouse. It describes how money moves across borders.
Option (4) Globalisation of finance — Incorrect. Globalisation of finance means financial markets joined across the world, trading billions of dollars within seconds. It describes how money markets work.
Note: Both terms share one heading, but each has its own definition: weightless economy by its products, knowledge economy by the work people do.
NCERT (2026-27): “The Economic … |