Productivity in service-related businesses has not grown as rapidly as in manufacturing businesses because service businesses are ______.
A) more capital intensive
B) more labor intensive
C) less labor intensive
D) more expensive to operate

Question

Quizplus · Accepted Answer

Service-related businesses are generally more labor intensive than manufacturing businesses, relying more on human effort and interaction, which can limit the rate of productivity growth compared to the more automated and capital-intensive manufacturing sector.

Productivity in Service-Related Businesses Has Not Grown as Rapidly as in Manufacturing