Question

Q7. India is a labour abundance and capital scarce economy. Which technique of production should be used to produce the commodity?

Answer 1

Answer:

Indian labour laws are considered complex and restrictive. ... As a consequence of this, the labour to capital ratio is low despite the fact that India is a labour abundant and capital scarce country. Rigidities in the labour market have also ensured that the employment elasticity of Indian economy has remained low.