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Economics · Oct / Nov 2024 · Paper 12 · Question 14

2281Firms and production

What is most likely to encourage capital-intensive production methods in a low-income economy?

  1. Aexpensive capital equipment costs
  2. Bgrants from foreign aid programmes
  3. Csupplies of local low-cost labour
  4. Da shortage of highly trained supervisors

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Correct answer: B. grants from foreign aid programmes

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