Which of the following statements about productivity in the service sector of the U.S. economy is most accurate?
A) Productivity in the service sector has increased much more rapidly than productivity in the manufacturing sector.
B) Improving productivity in the service sector is much less important than improving productivity in the manufacturing sector, because the service sector does not really produce anything.
C) Productivity in the service sector is easier to measure than productivity in agriculture.
D) Measures of productivity in the service sector do a poor job of taking quality improvements into account.

Question

Quizplus · Accepted Answer

The text cites many examples to illustrate that the quality of output in the service sector has improved dramatically. However, current measures of productivity concentrate on quantity rather than quality. Thus, these current measures understate how improvements in the service sector are contributing to rising standards of living.

Which of the Following Statements About Productivity in the Service