Final answer:
Service often requires a higher labor content, whereas the production of goods is more capital-intensive.
Step-by-step explanation:
The statement in the question is TRUE. Service generally requires a higher labor content, while the production of goods is more capital-intensive.
When providing a service, such as healthcare or consulting, the main input is human labor. The quality and skill of the workers can greatly impact the quality of the service provided. On the other hand, in the production of goods, such as cars or computers, a significant amount of capital is required in the form of machinery and equipment.
An example of a service that is labor-intensive would be a hair salon, where hairdressers provide their services directly to customers, requiring a high level of human interaction and expertise.