A labour-intensive technique refers to a production process that requires a significant amount of human labor compared to capital or machinery. This technique involves a higher ratio of labor to capital and is often used in industries where labor is abundant and relatively inexpensive. The correct answer is option 'A', which states that a labor-intensive technique would be chosen in a labor surplus economy. Let's understand why this is the case.

Reasons for choosing a labour-intensive technique in a labour surplus economy:

1. Abundance of labor: In a labor surplus economy, there is a large pool of available workers looking for employment. Therefore, using a labor-intensive technique makes sense as it provides employment opportunities for a greater number of people.

2. Lower wages: In a labor surplus economy, the cost of labor is relatively low due to the abundance of available workers. By using a labor-intensive technique, firms can take advantage of these lower wages, thereby reducing production costs.

3. Limited capital: In a labor surplus economy, the availability of capital may be limited. Investing in expensive machinery or technology may not be feasible for all firms. A labor-intensive technique, which relies more on human labor than capital, can be a more viable option in such situations.

4. Flexibility and adaptability: Labor-intensive techniques often offer greater flexibility and adaptability to changing market conditions. When demand fluctuates, it is easier to adjust the workforce compared to making changes in machinery or technology. This flexibility allows firms to respond quickly to market demands and avoid excessive inventory or production costs.

5. Skill development and poverty reduction: The widespread adoption of labor-intensive techniques can contribute to skill development among workers. As more people are employed and gain experience, their skills and productivity improve, leading to overall economic development. Additionally, using labor-intensive techniques can help reduce poverty by providing employment opportunities to a larger section of the population.

Conclusion:

In a labor surplus economy, where there is an abundance of available workers and lower wages, using a labor-intensive technique makes economic sense. It provides employment opportunities, reduces production costs, and offers flexibility in adapting to market conditions. However, it is important to note that the choice of production technique also depends on various other factors such as the nature of the industry, technological advancements, and market demand.