Question

In an under-developed economy, the production techniques employed are primarily _________________.

• A. Capital - Intensive
• B. Labour - Intensive
• C. Both (a) and (b)
• D. Neither (a) nor (b)

Answer 1

The correct option is B Labour - Intensive

In an under-developed economy, the production techniques employed are primarily labour intensive. Population is very high in underdeveloped countries and hence labour intensive methods of production is primarily used.Underdeveloped countries can be referred to those countries which are backward economically. Overpopulation, income inequalities and under-employment- all prevails in the underdeveloped economy.