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JAMB Economics 1988 Question 46

Question 46

Theory of Production

If technology becomes less capital-intensive, it means

  1. A.an increase in the capital/labour ratio
  2. B.an increase in the labour/capital ratio
  3. C.a fall in the labour/capital ratio
  4. D.increased unemployment.
Show the answer and explanation

Answer: B (an increase in the labour/capital ratio)

Explanation

Less capital-intensive methods use more labour per unit of capital, so the labour/capital ratio rises.