which choice of technique is suitable for underdeveloped countries
Answers
Answer:
In an under-developed economy, the production techniques employed are primarily labour intensive. Population is very high in underdeveloped countries and hence labour intensive methods of production is primarily used.Underdeveloped countries can be referred to those countries which are backward economically. Overpopulation, income inequalities and under-employment- all prevails in the underdeveloped economy.
Answer:
The choice of techniques is an area of economics in which the question of the appropriate capital or labour-intensity of the method of production of goods is discussed. In the context of traditional development economics it was often recognised (Stewart (1972) for example) that this choice was central to development strategies and that such choices were inter-twined with decisions over the type of goods to be produced and the scale of operation of an industry.