What does capital-intensive production imply?

High demand for capital in the financial market

Production that relies heavily on machinery

Production that primarily uses natural resources

Production that is highly labor-dependent

How does an increase in productivity affect a firm's demand for factors of production?

It reduces the demand for factors of production

It increases the demand for factors of production

It has no effect on the demand for factors of production

It decreases the efficiency of factors of production

What is the primary difference between production and productivity?

Production measures output, while productivity measures input

Production refers to creating goods/services, while productivity measures efficiency

Production measures efficiency, while productivity measures output

Production and productivity are synonymous

Why do firms monitor the prices of alternative factors of production?

To reduce demand for those factors

In what circumstance might a firm shift from labor-intensive to capital-intensive production?

When demand for goods/services decreases

When technology becomes more expensive

When machinery becomes more affordable

How does the availability of factors of production influence production levels?

It determines the cost of production

It leads to changes in production techniques

It affects the demand for goods/services

What is meant by the term 'labour-intensive production'?

Production that uses primarily natural resources

Production that relies heavily on machinery

Production where labor costs are a significant proportion of total costs

Production that requires minimal labor

How does the demand for goods and services influence the demand for factors of production?

It decreases the demand for factors of production

It increases the demand for factors of production

It has no effect on the demand for factors of production

It reduces the efficiency of factors of production

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