A capital-intensive production process is one that
A)Has a high ratio of labor to capital.
B)Has a high ratio of capital to labor.
C)Is used only in the United States.
D)All of the choices are correct.

Question

Quizplus · Accepted Answer

A capital-intensive production process is one that relies more on machinery and equipment than on labor. This means that it has a higher ratio of capital (machinery and equipment) to labor. Choice A is incorrect because a labor-intensive production process would have a higher ratio of labor to capital. Choice C is incorrect because capital-intensive production processes are used in many countries, not just the United States. Choice D is incorrect because only choice B accurately describes a capital-intensive production process.

A Capital-Intensive Production Process Is One That