Which of the Following Is Likely to Be Most Capital-Intensive

question 25

Multiple Choice

Which of the following is likely to be most capital-intensive?

• A)Farming in developing countries.
• B)Production of clothing in rural China.
• C)Oil refining in the United States.
• D)None of the choices are correct.

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Definitions:

Price Ceiling

A cap set by authorities on the maximum price for a good or service, aimed at safeguarding consumers.

Price Floor

A minimum price set by the government or other agency, below which a product cannot legally be sold.

Shortage

A situation where the demand for a product or service exceeds the supply available.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at a given price.