Which of the following observations is true?

Question

Quizplus · Accepted Answer

The cost disease occurs as the opportunity cost of labor increases, meaning that as workers become more productive in some industries (such as manufacturing), wages tend to rise across the economy, including in industries where there has been less productivity growth (such as healthcare and education). This results in higher costs for goods and services in those industries, without corresponding increases in efficiency or improvements in quality. The cost disease is not limited to any particular type of goods or services, nor is it more prevalent in low-income countries or commodity markets.

Which of the Following Observations Is True