A service-based economy is one where the majority of economic activity comes from providing services rather than producing goods. In this type of economy, industries such as healthcare, education, and hospitality play a significant role. People often work in jobs that involve helping others or providing expertise, rather than manufacturing products. In a service-based economy, consumer spending is primarily directed towards services. This shift can lead to increased job opportunities in sectors like technology and finance, as businesses focus on meeting the needs of customers through personalized and efficient service delivery.