Question

Labour absorbing technology is given up in preference to capital intensive.state it's economic value in the context of PPC

Answer 1

Capital intensive and labour saving technology always increases productivity . Better utilization of resources happens . Labour that is freed by this technology can be employed to other occupation which further rises income and leads to growth . The production possibility frontier (PPF) moves outward because the capacity of resources increases . Increase in efficiency of capital raises the total productive capacity of both available labour and capital .