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A developed country—also called an industrialized country—has a mature and sophisticated economy, usually measured by gross domestic product (GDP) and/or average income per resident. Developed countries have advanced technological infrastructure and have diverse industrial and service sectors. Standard of living is generally measured using per capita GDP. Standards of living are usually higher in developed countries. In fact, basic measures of standard of living, such as per capita GDP, are often used to define the differences between more and less developed countries.
Question : A labour-intensive technique would be chosen in a:
Option 1: labour-surplus economy
Option 2: capital-surplus economy
Option 3: developed economy
Option 4: developing economy
Question : Capital-intensive technique would get chosen in
Option 1: a labor surplus economy where the relative price of capital is lower.
Option 2: a capital surplus economy where the relative price of capital is lower.
Option 3: A developed economy where technology is better.
Option 4: developing economy where technology is poor.
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