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O Levels Economics (2281)•2281/12/M/J/19
Question 12 from 2281/12/M/J/19

Explanation

Resource Reliance in Production Methods

Steps:

  • Define capital-intensive production as relying heavily on machinery and technology over human labor.
  • Define labor-intensive production as depending mainly on human workers with minimal machinery.
  • Compare the two: the core distinction lies in the primary inputs used.
  • Eliminate options unrelated to inputs, confirming the focus on resources.

Why C is correct:

  • By definition, capital-intensive uses more capital (e.g., machines) relative to labor, while labor-intensive prioritizes human effort, directly tying to resource reliance.

Why the others are wrong:

  • A: Market structure refers to competition levels, not production inputs.
  • B: Output type is the end product, unrelated to method differences.
  • D: Firm size affects scale but not the capital-labor ratio in production.

Final answer: C

Topic: Firms and production

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