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.

Question

Quizplus · Accepted Answer

Labor intensive goods require relatively more labor than goods that are not labor intensive. This means that the production process involves a higher proportion of labor to other inputs, such as capital, land, or technology. The use of labor in this manner can be a strategic advantage for producers, as it may allow them to keep costs low and maintain competitiveness in certain markets where labor costs are relatively low.

If a Good Is Labor Intensive It Means That the Good