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Difficulty: EasyThe Digital Revolution and Economic Globalization

“The proliferation of personal computers, the expansion of the Internet, and the development of high-speed telecommunications in the late twentieth century fundamentally restructured the American workplace. By facilitating instantaneous communication and the rapid transfer of data, these technological innovations accelerated the integration of the United States into a global economic network. While these changes stimulated productivity and created new high-tech industries, they also contributed to the decline of traditional manufacturing jobs in the United States and the expansion of the service sector.”

—Adapted from a historical analysis of the late-twentieth-century American economy

Which of the following was a primary domestic economic consequence of the technological developments described in the passage?

  1. The expansion of the service sector and the transition toward an information-based economyAnswer
  2. B
    The implementation of supply-side economics relying on increased government spending to build manufacturing plants
  3. C
    The creation of Great Society programs to regulate international digital trade
  4. D
    The adoption of mercantilist policies to protect domestic computing manufacturing from foreign competition

Answer

The expansion of the service sector and the transition toward an information-based economy
The correct answer is correct because the digital revolution, characterized by the spread of personal computers and the internet, led to a structural shift in the United States economy, transitioning it from a manufacturing-based economy to one dominated by service industries and information technology.

Step-by-Step Solution

1
Analyze the provided stimulus to identify the core historical developments described.
The passage describes the growth of computer technology, the internet, and telecommunications in the late twentieth century, noting that these developments accelerated global integration, declined traditional manufacturing, and expanded the service sector.
Understanding the main thesis of the stimulus is essential to identifying the correct consequence.
2
Evaluate each option against the historical context of the digital revolution in Period 9.
The expansion of the service sector and the information economy directly matches the transition to a post-industrial society enabled by computing technology.
This step allows the student to rule out distractors that represent chronological errors or conceptual misunderstandings of economic theories.

Key Concept

The shift toward a service-sector and information-based economy during the digital revolution.
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Topics

The Digital Revolution and Economic Globalization

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