Final answer:
The true statements are that services often have a higher degree of customer contact and more labor content than manufacturing, and quality assurance in services can be challenging due to variation. Services make up the largest part of GDP and have increasingly done so over time.
Step-by-step explanation:
To identify the true statements from the options given, let's consider each statement in the context of the modern economy and the information provided.
- A: Services often have a higher degree of customer contact than manufacturing does. This is true. In the service sector, there is typically a direct interaction between the service provider and the customer, which is less common in manufacturing.
- B: Services often have more labor content than manufacturing jobs do. This statement is generally true because many services require direct human effort, whereas manufacturing often relies more on machinery and automation.
- C: Quality assurance can be challenging in services because of the variation in types of services provided. This is true. The intangible nature of services and their dependence on human performance can lead to variability in service quality.
- D: Because of reliance on suppliers, production of goods is often subject to higher variability than services are. This statement can be misleading, as both services and goods can experience variability. However, services are often seen as less variable as they are consumed at the point of production.
The service sector, which includes healthcare, education, and legal and financial services, now makes up the largest part of GDP and has seen a growing share over time. With outsourcing and offshoring affecting both manufacturing and service industries, there are substantial shifts in labor trends. As a result, manufacturing jobs have declined while service jobs have increased. These shifts underline the differences in customer contact, labor content, and quality assurance challenges between the two.