ECONOMICS
PRODUCTIVITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the market structure of the production process
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the output that the production process creates
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the resources on which the production relies
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the size of the firm that uses the production process
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Detailed explanation-1: -Capital intensive refers to the amount of capital invested so as to increase the revenue and profit whereas labour intensive refers to amount spent on training to labour so as to increase the efficiency of labour which will ultimately result in the increased production.
Detailed explanation-2: -Economists traditionally divide the factors of production into four categories: land, labor, capital, and entrepreneurship. Land refers to natural resources, labor refers to work effort, and capital is anything made that is used to make something else.
Detailed explanation-3: -These refer to the type of production methods used in producing goods or services. A labor-intensive industry produces a good that uses labor more intensively than capital. This means that the amount of labor used in the production is large compared to the use of capital input (equipment and machinery).
Detailed explanation-4: -The term “capital intensive” refers to business processes or industries that require large amounts of investment to produce a good or service and thus have a high percentage of fixed assets, such as property, plant, and equipment (PP&E).
Detailed explanation-5: -Labour intensive is when products are mainly produced by human workers. Machines and special tools may be used too, but overall it requires human creativity and effort to produce the product. A busy kitchen is one example of labour intensive production.