Factors of Production Demand

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Questions and Answers

What is labour-intensive production?

Production mainly dependent on capital with more machinery and equipment employed than other factors
Production mainly dependent on land with more agricultural resources employed than other factors
Production mainly dependent on technology with automated processes and minimal labor
Production mainly dependent on labor with more laborers employed than other factors (correct)

What is capital-intensive production?

Production which requires a relatively high level of capital investment compared to the labor cost (correct)
Production mainly dependent on land with more agricultural resources employed than other factors
Production mainly dependent on capital with more machinery and equipment employed than other factors
Production mainly dependent on technology with automated processes and minimal labor

What is productivity in the context of production?

$Productivity = \frac{Output}{Input}$, measuring the amount of output produced from a given amount of input over a period of time (correct)
$Productivity = Output + Input$, representing the combined value of output and input in the production process
$Productivity = \frac{Input}{Output}$, measuring the efficiency of input utilization in the production process
$Productivity = Output - Input$, quantifying the difference between output and input in the production process

What does capital refer to in production?

<p>Machinery, equipment, tools, buildings, and vehicles used in production (A)</p> Signup and view all the answers

How is production defined?

<p>$Production$ is the transformation of raw materials to finished or semi-finished goods and services, adding value to inputs to create outputs (C)</p> Signup and view all the answers

Study Notes

Production Concepts

Labour-Intensive Production: A method of production that relies heavily on human labour and manual effort to produce goods and services.
Capital-Intensive Production: A method of production that relies heavily on machines, technology, and equipment to produce goods and services.
Productivity: The efficiency of production, measured by the output produced per unit of input (e.g. labour, capital).
Capital: In the context of production, refers to the assets, equipment, and machinery used to produce goods and services.
Production: The process of creating goods and services that satisfy human wants and needs, involving the transformation of inputs (e.g. labour, capital) into outputs.

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Description

Test your knowledge of factors that determine the demand for factors of production, such as labour-intensive and capital-intensive production. Explore the advantages and disadvantages of each type of production.