Multiple Choice
Government investment in human capital is likely to shift which of the following curves in the production process?
74
views
0. Basic Principles of Economics
Factors of Production
Multiple Choice
A country with a large amount of arable land and a small number of farmers will have a:
A
high land-to-labor ratio
B
low land-to-labor ratio
C
high labor productivity
D
low capital intensity
Verified step by step guidance1
Understand the key terms: 'land-to-labor ratio' refers to the amount of land available per unit of labor (farmer), while 'labor productivity' measures output per worker, and 'capital intensity' relates to the amount of capital used per worker.
Identify the given conditions: the country has a large amount of arable land and a small number of farmers, meaning there is a lot of land relative to the number of workers.
Calculate the land-to-labor ratio conceptually by dividing the total amount of land by the total number of farmers: \(\text{Land-to-labor ratio} = \frac{\text{Amount of land}}{\text{Number of farmers}}\).
Since the numerator (land) is large and the denominator (labor) is small, the land-to-labor ratio will be high, indicating a high amount of land per farmer.
Conclude that the country will have a high land-to-labor ratio, which matches the correct answer choice.
Related Videos
Related Practice
