Exploring economics: the secret life of t-shirts
Exploring economics: the secret life of t-shirts

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

Free course

Exploring economics: the secret life of t-shirts

1.1.2 Labour intensive and capital intensive techniques of production

A good or service in question may be produced using a technique that employs mostly labour, referred to as a labour intensive technique, or a capital intensive technique, where machinery and technology are important.

Activity 3

Write down an example of a good you imagine being produced with a labour intensive technique, and a good you imagine produced with a capital intensive technique.

To use this interactive functionality a free OU account is required. Sign in or register.
Interactive feature not available in single page view (see it in standard view).


Fruit picking can be done using a labour intensive technique when the farm owner employs a large amount of seasonal workers to pick up the fruit. These days, fruit picking can also be done using machinery, which would be a capital intensive technique. Another example of capital intensive techniques are often found in car production.


Take your learning further

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses.

If you are new to University-level study, we offer two introductory routes to our qualifications. You could either choose to start with an Access module, or a module which allows you to count your previous learning towards an Open University qualification. Read our guide on Where to take your learning next for more information.

Not ready for formal University study? Then browse over 1000 free courses on OpenLearn and sign up to our newsletter to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371