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GCE Economics 1990 Question 26

Question 26

Theory of Production

When a country has a large labour force, it is beneficial to use a method of production which is

  1. A.capital intensive
  2. B.land intensive
  3. C.labour intensive
  4. D.mechanically intensive
  5. E.technically intensive.
Show the answer and explanation

Answer: C (labour intensive)

Explanation

Where labour is plentiful and cheap, labour-intensive methods create jobs and keep costs low.