The choice of the method of production in an economy is determined by the?

A. level of technical know-how
B. rate of population growth
C. availability of natural resources
D. level of income

Correct Answer:

Option A – level of technical know-how

Explanation

The method of production has to do with Processes and techniques that are used to manufacture a product. The preferred production method used in production is mainly determined by the level of technological advancement of the firm or industry as a whole. For an economy that is embracing technological changes and advancements, the technical know-how will greatly influnce the production technique.