Final answer:
The assertion that service productivity measurement is simpler than goods production is false. Measuring productivity in services is complicated due to intangibles and can depend on quality and customer satisfaction, whereas goods production often results in easier-to-measure outputs.
Step-by-step explanation:
The statement that measurement of productivity in service is more straightforward than in goods production due to the high degree of uniformity of inputs is false. In fact, measuring productivity in services can often be more complex than in goods production because of the intangible nature of services and the variability in service delivery. Productivity in services may not be as straightforward to measure due to factors like the quality of service, customer satisfaction, and the individual performance of service providers. Conversely, goods production often results in a tangible output that can be more easily quantified.
Productivity, defined as output per unit of input, can be measured in various ways besides the amount produced per hour of work. For instance, a common measure of U.S. productivity per worker is dollar value per hour that the worker contributes to the employer's output. However, this measure typically excludes sectors like government work and farming where output is not sold in the market or represents a small share of the economy. Productivity can also be influenced by factors such as economies of scale, where cost advantages are obtained due to the size of operations.