Question

In deciding “How to produce”, the economy should consider ______.

Options

• Labour Intensive Techniques

• Capital Intensive Techniques

• Both (a) and (b)

• Neither (a) nor (b)

Answer 1

In deciding “How to produce”, the economy should consider Labour Intensive Techniques and Capital Intensive Techniques.

Explanation:

“How to produce” involves choosing between labour-intensive and capital-intensive techniques, so the economy should consider both types of techniques.