"Cost disease" refers to the tendency for low productivity in the service sector to lead to higher costs in those industries.

Question

Quizplus · Accepted Answer

"Cost disease" is a real economic phenomenon that refers to the increase in costs of industries with low productivity compared to those with higher productivity. This is because, in the service sector, there is limited potential for automation and technology utilization to increase efficiency and productivity, ultimately leading to higher costs for consumers.

"Cost Disease" Refers to the Tendency for Low Productivity in the Service