Asked by Amber Hodge on May 16, 2024
Verified
Firms in an economy with high labor costs have an incentive to use more ________ techniques.
A) labor-intensive
B) capital-intensive
C) capital-saving
D) labor-dependent
Labor Costs
The total expense incurred by employers for the wages, benefits, and taxes associated with the workforce.
Capital-Intensive
A production process that requires a higher ratio of capital (machinery, equipment) to labor.
- Comprehend the correlation between the costs of capital and labor, and their interchangeability in the production process.
Verified Answer
LW
LAI WEN YIING KARENMay 21, 2024
Final Answer :
B
Explanation :
Firms in economies with high labor costs are incentivized to use more capital-intensive techniques to reduce reliance on expensive labor, thereby lowering costs.
Learning Objectives
- Comprehend the correlation between the costs of capital and labor, and their interchangeability in the production process.