Why " How To Produce" is …

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Why " How To Produce" is a complex problem for less development countries like India . Explain how ?

Posted by Himanshu Singh 7 years, 7 months ago

CBSE > Class 12 > Economics

2 answers

Sakshi Chahar 7 years, 7 months ago

Less developed countries like india often face three central problems "how to produce" is one of them.it is the problem of choice of technique of production i.e, to choose labour intensive or capital intensive technique of production.So, if our country choose LIT(labour intensive) for unemployed people sake then it will lack in new technology and if country adopts CIT then country's large amount of unemployed youth are neglected which is not a good determinant in country's economic growth.

1Thank You

Syed Khabib 7 years, 7 months ago

The problem of How to produce related to the choice of technique of production. The problem become complex because there are more than one type of technique .1.Capital Intensive -More use of machinery than labour.It minimise cost of production .2.Labour Intensive -More use of labour than machinery.It promote employment.This problem become more complex for less development countries like India because producer want to minimise its cost and at the sametime want more efficiency.The unemployment level in India is more so to provide producer use labour intensive technique.

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