Productivity tends to be more difficult to improve in the service sector because the work is
A) often difficult to automate.
B) typically labour-intensive.
C) frequently processed individually.
D) often an intellectual task performed by professionals.
E) All of the above make service productivity more difficult.

Question

Quizplus · Accepted Answer

The service sector involves activities that are often difficult to automate, such as customer service or personal interactions. This means that many tasks rely on human labor and are typically labor-intensive, making it harder to improve productivity through automation or technology. Additionally, service tasks are often processed individually, which can limit the potential for mass-production methods or economies of scale to increase efficiency. Finally, service sector work is often an intellectual task performed by professionals, meaning that it is complex and difficult to standardize or streamline. All of these factors combine to make productivity improvement more challenging in the service sector than in other areas of the economy.

Productivity Tends to Be More Difficult to Improve in the Service