- 2070 Chaitra · 3 marks
Labour intensive versus capital intensive projects
Short answer
Labour-intensive projects rely mainly on human labour, provide high employment and low capital cost but slower, variable quality (e.g., rural road by hand). Capital-intensive projects use machines and money, provide low employment, high capital cost, faster uniform quality (e.g., hydropower dam).
Differentiate between labour intensive and capital intensive projects with examples.
| Basis | Labour intensive | Capital intensive |
|---|---|---|
| Main input | Human labour | Machines and money |
| Employment | High | Low |
| Capital cost | Low | High |
| Speed and quality | Slower, variable quality | Faster, uniform quality |
| Suitable where | Labour is cheap and plentiful | Labour is scarce or the work is large and technical |
| Example | Rural road by hand, canal digging, trail improvement | Hydropower dam, tunnel, airport, steel plant |
✓ Answer checked by Claude Opus 5.5 (high effort)
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