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</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</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.

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