All production operations combine the two factors of labour and capital. The importance of labour and capital to a specific business are described in terms of their intensity.
Which of the following describes labour intensive production?
When products are mainly produced by special tools
When products are mainly produced by human workers
When products are mainly produced by robots
Which of the following is an advantage of labour intensive production?
Skilled and unskilled workers will be paid the same amount
Quality of products will be consistent
Workers are often more motivated
Which of the following describes capital intensive production?
When products are mainly produced by machines and robots
When products are mainly produced by humans
When products are very expensive to produce
What type of production occurs when the production process requires both machinery and humans?
Labour intensive productions
Which of the following is an advantage of capital intensive production?
Initial set up is cheap
Workers are more motivated
Quality of products can be standardised