The two types of techniques are:
a. labour-intensive technique: This technique employ more labour and require less capital.
b. capital- intensive technique :here more capital and less labour required.
The problem of how to produce is what methods are needed to be adopted for production that would benefit people and boost the economy.
If the labor-intensive method is applied more frequently then the quantity of production would be less, similarly quality would also be not at par. But would generate more employment.
If capital intensive is applied then production would be more quality of products would improve but would lead to less employment of labor.
Hence the government analyzes and as per the demand, it generates supply through the above two methods.
Positive economics is the analysis, limited to cause and effect relationship. Whereas normative economics aims at examining real economic events from the moral and ethical point of view.
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