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WorksheetsCapital Intensive vs Labour Intensive Production
Total questions: 15
Worksheet time: 8mins
Examples of labour-intensive industries include:
Manufacturing
Teaching
Sports coaching
Psychiatry
In capital-intensive industries the use and cost of capital is more than that of any other factor 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
Examples of capital-intensive industries include:
Manufacturing
Soft-drink production
Oil extraction
Hospitality
Labour intensive production processes tend to be used to produce:
standardized mass products
custom-made products
Capital-intensive firms, such as the aircraft industry, need a lot of money to fund their operations. This acts as a barrier to entry in the industry, since it is difficult for new firms to enter the industry:
True
False
Despite the initially high costs of capital-intensive production, there are potentially huge cost savings in the form of technological economies of scale:
True
False
Firms that become more capital-intensive usually do so to:
Provide customers with unique custom-made products
Increase the levels of output and productivity by mass producing their products resulting in lower unit costs.
All of the following are advantages of Capital intensive except________
Goods are produced at a greater speed
Items produced are standardised
Increased unemployment
Greater number of goods produced
All of the following are advantages of labour intensive production except_______
customised products
increased employment
mass production of goods
lower start up cost
Capital is necessary in production for all of the following except ______
the expansion of business
to operate the business
for future investments
to determine what to invest in
A disadvantage of labour intensive production is ______
A power cut can hault production
Machines do not go on long breaks or vacations
Customised goods can be produced
Greater connection between producer and customer
A disadvantage of capital intensive production is ______
heavy initial investment is required which can be costly
mass production can lead to reduce unit cost of production
production is more efficient
goods are produced at a greater speed
Which of the following is not an example of capital intensive industry?
artificial intelligence call center
security firm
kit kat chocolate factory
automotive production industry
Which of the following is not an example of the labour intensive industry?
health care practitoners
local farmers
small cakery
steel production industry
