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CAIE IGCSE Economics 3.5.2 Labour Intensive and Capital Intensive Production Questions

Practise Cambridge IGCSE Economics by comparing labour-intensive and capital-intensive methods and the factors affecting a firm’s choice.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Define labour-intensive and capital-intensive production methods.
  • Explain factors influencing a firm’s choice between labour and capital.
  • Analyse advantages and disadvantages of changing production intensity.

CAIE IGCSE Economics 3.5.2 Labour Intensive and Capital Intensive Production Questions question 1

[Maximum number: 1]

A firm chooses to become more capital-intensive.

What is least likely to have increased?

A

interest rates

B

minimum wages

C

the power of trade unions

D

the productivity of capital

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