Question

Capital intensive technique would get chosen in a ___________.

• A. labour surplus economy
• B. capital surplus economy
• C. developed economy
• D. developing economy

Answer 1

The correct option is B capital surplus economy

Capital surplus economy refers to an economy where the rate of investment is very high, i.e, quick capital accumulation takes place. Capital intensive techniques would, thus, be preferred as money can be converted into useful assets for production.