The service sector has lower productivity improvements than the manufacturing sector because
A) the service sector uses less skilled labour than manufacturing.
B) the quality of output is lower in services than manufacturing.
C) services usually are labour-intensive.
D) service sector productivity is hard to measure.
E) manufacturing sector productivity is hard to measure.

Question

Quizplus · Accepted Answer

Services usually rely heavily on human labour and are less mechanized than manufacturing processes, making it harder to increase productivity through industrial engineering techniques. Furthermore, services are typically customized and personalized, exacerbating the challenges of scaling service delivery to increase efficiency.

The Service Sector Has Lower Productivity Improvements Than the Manufacturing