Question

Consider the following statements and identify the right ones.

• A. COR is relatively low in labour intensive sectors.
• B. COR will be high in capital intensive sectors
• C. Both a and b
• D. none of these

Answer 1

The correct option is C Both a and b

The labour intensive sector is the one in which large amount of labour is required by any industry for the production of goods whereas capital intensive sector is the one in which a huge capital invesment is required by the industry to produce goods. Labour intensive includes restuarants, agriculture etc whereas oil production and refining, railways etc. Thus COR is high in capital intensive and low in labour intensive.