If a Good Is Labor Intensive It Means That the Good

question 29

Multiple Choice

If a good is labor intensive it means that the good is produced

• A) using relatively more labor than goods that are not labor intensive.
• B) using labor as the only input.
• C) using more labor per unit of output than goods that are not labor intensive.
• D) using labor such that the total cost of labor is greater than the total cost of capital.
• E) using labor such that the cost of labor is more than 50% of total cost.

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Definitions:

Labor Force

The aggregate sum of individuals working or actively looking for work in an economic system.

Marginal Rate

The rate at which one variable changes as another variable changes by one unit, commonly used in the context of tax rates or marginal rate of substitution in economics.

Transformation

The process of changing the state, form, or structure of something, often seen in contexts ranging from technology to economics.

Production Possibility

Represents various combinations of amounts of two or more goods or services that can be produced within a given time period, with a given amount of resources, and with technology constraints.