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JAMB Economics 2003 Question 11

Question 11

Theory of Production

The best method of production in an underpopulated country is

  1. A.labour-intensive
  2. B.labour-extensive
  3. C.land-intensive
  4. D.capital-intensive
Show the answer and explanation

Answer: D (capital-intensive)

Explanation

An underpopulated country is short of labour, so it should use more machines in place of workers: capital-intensive methods.