Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:
What factor determines the methods of production in a market economy?
Options:
Government regulations
Availability of resources
Labour-intensive methods
Both 2 and 3
Correct Answer:
Availability of resources
Explanation:
Iin a market economy, the methods of production are determined based on the availability of resources. If labor is cheaper than capital, more labor-intensive methods may be used, and if capital is more affordable, capital-intensive methods may be preferred.