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Capital intensive technique would be chosen in a
- a)labour surplus economy where the relative price of capital is lower
- b)capital surplus economy where the relative price of capital is lower
- c)developed economy where technology is better
- d)developing economy where technology is poor
Correct answer is option 'B'. Can you explain this answer?
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Capital intensive technique would be chosen in aa)labour surplus econo...
Capital intensive technique refers to a type of production process that requires a significant amount of capital investment in order to produce goods and services. This technique is often used in industries that require large, expensive machinery or equipment, and it is typically associated with high levels of productivity and output.
Option B is the correct answer because capital surplus economies have a lower relative price of capital. This means that the cost of borrowing money or investing in capital is lower in these economies, making it more attractive for firms to invest in capital-intensive techniques. In contrast, labour surplus economies have a higher relative price of capital, which means that the cost of investing in capital is higher and it may be more cost-effective for firms to use more labour-intensive techniques instead.
Other factors that may influence the choice of capital-intensive technique include:
- Technological advancement: In developed economies where technology is better, firms may be more likely to use capital-intensive techniques that take advantage of advanced machinery or automation.
- Availability of resources: In economies with abundant natural resources, such as oil or minerals, firms may be more likely to invest in capital-intensive techniques that can extract these resources more efficiently.
- Government policies: Government policies can also influence the choice of production techniques, such as tax incentives for investing in certain types of capital or regulations that require firms to use more environmentally-friendly techniques.
Option B is the correct answer because capital surplus economies have a lower relative price of capital. This means that the cost of borrowing money or investing in capital is lower in these economies, making it more attractive for firms to invest in capital-intensive techniques. In contrast, labour surplus economies have a higher relative price of capital, which means that the cost of investing in capital is higher and it may be more cost-effective for firms to use more labour-intensive techniques instead.
Other factors that may influence the choice of capital-intensive technique include:
- Technological advancement: In developed economies where technology is better, firms may be more likely to use capital-intensive techniques that take advantage of advanced machinery or automation.
- Availability of resources: In economies with abundant natural resources, such as oil or minerals, firms may be more likely to invest in capital-intensive techniques that can extract these resources more efficiently.
- Government policies: Government policies can also influence the choice of production techniques, such as tax incentives for investing in certain types of capital or regulations that require firms to use more environmentally-friendly techniques.
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Capital intensive technique would be chosen in aa)labour surplus econo...
If capital is available in surplus then capital will be used as it costs less.
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Capital intensive technique would be chosen in aa)labour surplus economy where the relative price of capital is lowerb)capital surplus economy where the relative price of capital is lowerc)developed economy where technology is betterd)developing economy where technology is poorCorrect answer is option 'B'. Can you explain this answer?
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Capital intensive technique would be chosen in aa)labour surplus economy where the relative price of capital is lowerb)capital surplus economy where the relative price of capital is lowerc)developed economy where technology is betterd)developing economy where technology is poorCorrect answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Capital intensive technique would be chosen in aa)labour surplus economy where the relative price of capital is lowerb)capital surplus economy where the relative price of capital is lowerc)developed economy where technology is betterd)developing economy where technology is poorCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Capital intensive technique would be chosen in aa)labour surplus economy where the relative price of capital is lowerb)capital surplus economy where the relative price of capital is lowerc)developed economy where technology is betterd)developing economy where technology is poorCorrect answer is option 'B'. Can you explain this answer?.
Capital intensive technique would be chosen in aa)labour surplus economy where the relative price of capital is lowerb)capital surplus economy where the relative price of capital is lowerc)developed economy where technology is betterd)developing economy where technology is poorCorrect answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Capital intensive technique would be chosen in aa)labour surplus economy where the relative price of capital is lowerb)capital surplus economy where the relative price of capital is lowerc)developed economy where technology is betterd)developing economy where technology is poorCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Capital intensive technique would be chosen in aa)labour surplus economy where the relative price of capital is lowerb)capital surplus economy where the relative price of capital is lowerc)developed economy where technology is betterd)developing economy where technology is poorCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Capital intensive technique would be chosen in aa)labour surplus economy where the relative price of capital is lowerb)capital surplus economy where the relative price of capital is lowerc)developed economy where technology is betterd)developing economy where technology is poorCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT.
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