As productivity in the manufacturing sector increases, the service sector must keep pace or it will become more expensive in the long run.

Question

Quizplus · Accepted Answer

This is because if the service sector does not keep pace with increasing productivity in the manufacturing sector, the cost of providing services will not decrease relative to the cost of manufacturing goods. This will lead to a pricing disadvantage for the service sector, making it more expensive in the long run.

As Productivity in the Manufacturing Sector Increases, the Service Sector