Income in services is more bifurcated than that in manufacturing.What does this sentence mean?
A) Incomes in services tend to be more seasonal.
B) Firms that produce services are more productive and therefore more wealthy than manufacturers.
C) Professional service providers generate high incomes while non-skilled and low-skilled service providers make low wages.
D) The income that firms produce from services is taxed at a higher rate than that produced from manufacturing.
E) The income that firms make from delivering services is distributed more evenly among employees than occurs in manufacturing firms.

Question

Quizplus · Accepted Answer

The sentence means that there is a larger gap or differentiation in the level of income earned by professionals in the service industry compared to non-skilled or low-skilled service providers. This is because professional service providers such as lawyers, doctors, and consultants command higher fees and salaries compared to jobs such as cleaning or food service. Therefore, the income distribution in the service industry is more divided or bifurcated than that in the manufacturing industry, where wage levels are more standardized across different skill levels.

Income in Services Is More Bifurcated Than That in Manufacturing