Multiple Choice
Refer to Figure 13-5. At which quantity does the efficient scale of production occur?
21
views
2. Introductory Economic Models
Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is an example of a capital-intensive commodity?
A
Handmade pottery
B
Automobiles
C
Wheat
D
Fresh vegetables
Verified step by step guidance1
Understand the concept of capital-intensive commodities: These are goods produced using a high ratio of capital (machinery, equipment, technology) relative to labor.
Analyze each option by considering the production process and the amount of capital used compared to labor.
Handmade pottery primarily relies on manual labor and craftsmanship, so it is labor-intensive rather than capital-intensive.
Automobiles require significant investment in machinery, assembly lines, and technology, making their production capital-intensive.
Wheat and fresh vegetables are agricultural products that depend mostly on land and labor, with relatively less capital input compared to automobiles.
Related Videos
Related Practice
Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency practice set
Problem sets built by lead tutorsExpert video explanations