If capital is available in large proportion and labour is less, then that economy is known as

Related MCQs

• If an economy operates on its production possibility curve, then the allocation of resources in that economy satisfies:
• The marginal condition for a Pareto-optimal allocation of factors requires that the ________ between labour and capital be equal for all commodities produced by different firms.
• The rate of discount which equilibrates the cost of capital good s and the expected future returns from the capital good is known as
• If the internal rate of return (r) is less than the cost of capital,the project should be
• Where capital availability is unlimited and the projects are not mutually exclusive, for the same cost of capital, following criterion is used
• A rise in supply and demand in equal proportion will result in:
• ___________ on capital is called ‘Cost of capital’.
• The labour market equilibrium determines the wage rate and
• Under Marginal productivity Theory, reward for labour is determined by
• A decrease in the supply of labour is likely to lead to: