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Capital intensive technique would get chosen in a
  • a)
    labour surplus economy.
  • b)
    capital surplus economy.
  • c)
    developed economy.
  • d)
    developing economy.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Capital intensive technique would get chosen in aa)labour surplus econ...
Explanation:

Capital intensive technique refers to the production process that requires a large amount of capital and less labor. In such a technique, the cost of machinery and equipment is high, and the cost of labor is low. Therefore, it is better suited for capital surplus economies.

Labour Surplus Economy:
In a labor surplus economy, there is an abundance of labor and a shortage of capital. Hence, the best-suited technique would be labor-intensive, where labor is cheap and abundant, and capital is scarce. Such a technique would help to generate more employment opportunities and improve the standard of living of the people.

Capital Surplus Economy:
In a capital surplus economy, there is an abundance of capital and a shortage of labor. Therefore, capital-intensive techniques are better suited to such economies. It requires less labor and more capital, which is easily available. This technique helps to produce goods and services at a large scale, which can be sold in the market for higher profits.

Developed Economy:
In a developed economy, both capital and labor are equally available. Hence, a balanced technique, which uses both labor and capital equally, is suitable. Such a technique helps to produce goods and services efficiently, which reduces the cost of production and increases profitability.

Developing Economy:
In a developing economy, both capital and labor are scarce. Hence, a technique that requires less capital and more labor is suitable. Such a labor-intensive technique helps to generate more employment opportunities, improve the standard of living of the people, and develop the economy.

Conclusion:
Therefore, the capital-intensive technique is suitable for a capital surplus economy where capital is abundant, and labor is scarce. It helps to produce goods and services efficiently and maximize profits.
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Community Answer
Capital intensive technique would get chosen in aa)labour surplus econ...
B..because in this technique more use of capital than labour
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Capital intensive technique would get chosen in aa)labour surplus economy.b)capital surplus economy.c)developed economy.d)developing economy.Correct answer is option 'B'. Can you explain this answer?
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