GENERAL KNOWLEDGE

Detailed explanation-1: -Greater the development of the primary and secondary sectors, more would be the demand for such services. as income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc.

Detailed explanation-2: -As the income level rises, people demand more services like tourism, shopping centres, schools, professional training centres, banks, etc. (iv) New services : With modernisation and globalisation, some new services based on information and communication technology have become important and essential.

Detailed explanation-3: -An increase in income results in an increase in the demand for goods and services while a decrease in income results in a decrease in demand; though not always. The marginal propensity to spend and the marginal propensity to save are looked at when determining the influences of the income effect.

Detailed explanation-4: -The service sector contributes the largest share to National Income in India in the 21st Century. The service sector is the backbone of the Indian economy and contributing around 53% of the Indian GDP.