Question

Which type of production technique increase unemployment?
[A] Labor intensive
[B] Capital intensive
[C] Agricultural
oriented
[D] Education oriented

Answer 1

Answer:

B

Explanation:

Capital is used for purchasing most modern technology and it will affect the human resources directly

Answer 2

Option B is the correct answer.

Capital intensive type of production technique increases unemployment.

1. Capital intensive techniques are usually adopted to increase production efficiency and profits of a company.
2. When capital intensive techniques of production are adopted then the work of labour gets decreased. Thus it leads to unemployment.
3. This type of unemployment is known as structural unemployment.