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Economics · Oct / Nov 2016 · Paper 12 · Question 13

2281Firms and production

Some agricultural co-operatives have changed from labour-intensive to capital-intensive methods of production. What might be a cause of this change?

  1. AAverage productivity of agricultural workers has increased.
  2. BFarming equipment has become more efficient.
  3. CPeople are eating less food for health reasons.
  4. DSome agricultural land has been sold for housing.

As printed in the paper

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Correct answer: B. Farming equipment has become more efficient.

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