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1.1 Main economic groups and factors of production

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Question 5

A commercial laundry folds 5,000 towels each week using an automated folding machine operated by two workers. The laundry sells the machine and employs eight more workers so that the same number of towels can be folded by hand.

Which statement correctly describes the laundry's new method of folding towels?

[1]
A

It is labour-intensive, because it uses proportionally more labour than capital

B

It is labour-intensive, because the workers now take the risk of the business failing

C

It is capital-intensive, because the same number of towels is still being produced

D

It is capital-intensive, because the money raised from selling the machine is now capital

Markscheme

1.1 Main economic groups and factors of production Questions

  1. GCSE
  2. /Economics
  3. /1.1 Main economic groups and factors of production

77 exam-style questions on OCR GCSE Economics 1.1 Main economic groups and factors of production, covering 1.1.1 Role of main economic groups and 1.1.2 Factors of production. Each one has a worked solution and a mark scheme showing where the marks go.

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