ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Increased investment in capital can help to increase labour productivity (output per worker). This capital intensity and labour productivity play an important role in determining long-run economic growth. More capital intensive methods enable increased output and higher living standards.

Detailed explanation-2: -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-3: -The most capital-intensive industry is the petroleum industry. However, the most expensive industries are the oil and gas industry, the pharmaceutical industry and the computer industry.

Detailed explanation-4: -Reddaway “labour-intensive technique is one in which larger amount of labour is combined with a smaller amount of capital.” oAccording to Prof. H. Myint “labour-intensive methods are those that require a large quantity of labour with a given amount of capital.”

Detailed explanation-5: -Capital intensive technique refers to that technique in which larger amount of capital is comparatively used. In such a technique the amount of capital used per unit of output is larger than what it is in case of labour intensive technique.