Question

The service sector has lower productivity improvements than the manufacturing sector because

A) the service sector uses less skilled labor than manufacturing
B) the quality of output is lower in services than manufacturing
C) services usually are labor-intensive
D) service sector productivity is hard to measure
E) none of the above

Answer 1

d

Step-by-step explanation:

service sector is hard to measure because output is not physical. in manufacturing you can measure how much labor in terms of commodity creation. but in service it is much more difficult. for example, a factory worker creates 700 cars a day. but the CEO creates 0 cars but is probably more influential in company. how do you measure their output?