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Discussion

A shift in an economy from heavy industry toward services tends to

  • A.leave its energy intensity unchanged
  • B.raise its per capita consumption while leaving the intensity alone
  • C.reduce its energy intensity without any efficiency improvement
  • D.raise its energy intensity sharply

Answer: C

Services create more value per unit of energy than steel or cement, so the aggregate ratio improves through the change of mix alone. Attributing the whole improvement to efficiency measures overstates what those measures achieved.

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