The Service Sector Has Lower Productivity Improvements Than the Manufacturing

question 37

Multiple Choice

The service sector has lower productivity improvements than the manufacturing sector because

• A) the service sector uses less skilled labor than manufacturing
• B) the quality of output is lower in services than manufacturing
• C) services usually are labor-intensive
• D) service sector productivity is hard to measure
• E) none of the above

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, influencing its liquidity, operational capability, and financial health.

Noncontrolling Interest

The portion of equity in a subsidiary not directly or indirectly owned by the parent company.

Cash Dividends

Dividends paid in the form of cash to a company's shareholders from its current or accumulated earnings.

Additional Paid-In Capital

The amount of money that shareholders have paid in excess of the par value of the shares, representing a source of non-debt based capital for the company.