Economics · Choice of Technique
According to Prof. Amartya Sen's analysis on the choice of techniques, which strategy should be adopted regarding production and investment?
- 1Labour-intensive technology should be employed for maximising production, while capital-intensive technology should be employed for maximising investment.✓
- 2A labour-surplus country should unconditionally employ only labour-intensive technology.
- 3Labour-intensive technology should be adopted solely for putting an end to disguised unemployment.
- 4Developing countries should always adopt labour-intensive technology in all sectors.
Correct answer
Labour-intensive technology should be employed for maximising production, while capital-intensive technology should be employed for maximising investment.
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