Question

Productivity tends to be more difficult to improve in the service sector. Which following is not the reason?

a. often an intellectual task performed by professionals
b. typically labor-intensive
c. frequently processed individually
d. often easy to automate
e. all of these

Answer 1

The correct answer is option d.

Step-by-step explanation:

The productivity in the services sector is indeed difficult to improve. The services are not tangible physical products like goods. It is difficult to assess productivity. Services are not a standard product.

They are produced using mainly labor-intensive techniques because more than machinery it requires a professional skill set and experience to produce. It is custom made for each individual consumer and cannot be compared to a set standard or specifications.

Since services are not standardized they cannot be automated easily.