Factor of production: Labor



Factor of production: Labor
Capital is the machine used to produce the goods and labor is the person who is paid to make the goods. Businesses activities not only consist of products, but also services. A teacher may not be producing anything in the class, but he would also be considered in the labor as he or she is providing service. The service is being provided either by the physical or mental effort of the person. Supply of labor is very mobile it fluctuates based on various factors and those factors are going to be discussed in the next post. Labor has geographical mobility but some workers are reluctant to move from one place to another as it is very difficult for them to leave the place with which they have formed a social bond






Rating 3.00 out of 5


Leave a Reply