Labour vs Capital Intensive Production

The production of different goods and services requires varying amounts of factors of production.

• True

• False

In labour intensive industries, the use and cost of labour is proportionately higher than the cost of other factors of production.

• True

• False

Click on the examples that are examples of labour-intensive industries

• Manufacturing

• Teaching

• Sports coaching

• Psychiatry

• Management cosultancy

In capital-intensive industries the use and cost of capital is more than that of any other factor of production.

• True

• False

Examples of capital-intensive industries include

• Manufacturing

• Soft-drink production

• Oil extraction

• Hospitality

Why is the cost in private-fee paying schools and health clinics expensive?

• The cost of real estate maintenance account for the largest proportion of production costs

• The cost of labour account for the largest proportion of production costs.

• The costo of IT systems account for the largest proportion of production costs.

Labour intensive production processes tend to be used to produce:

• standardized mass products

• custom-made products

The term 'labour cost' refers only to a person's wage or salary:

• True

• False

Labour costs also include other financial benefits such as:

• overtime pay

• bonuses

• paid holidays

• company cars

• costs of hiring and training workers

Capital-intensive production takes place if a firm spends more on capital costs than on any other factor of production-

• True

• False