Question

Suppose Industry X employs $1m worth of capital per employee and Industry Y employs $500,000 worth of capital per employee. Economist say that________.

Answer 1

Answer:

Y has more capital labour ratio ,is more capital intensive than X.

Explanation:

Capital Labour ratio term denotes Capital per labour employed . High /  less of this ratio implies high / less capital intensiveness

An industry with high capital labour ratio tends to more towards modernisation, automation of production process. This can also symbolise investment & productivity improvement. These can be chief characteristics of industry Y .