Labour is perishable which cannot be stored. If a worker does not work on a particular day, her/his labour is wasted. The labourer has to sell his labour immediately, irrespective of the prices paid in terms of wages.
What are the main characteristics of labor?
Characteristics of Labour as a Factor of Production
- 1] Perishable in Nature.
- Browse more Topics under Theory Of Production And Cost.
- 2] Labour is Inseparable from the Labourer.
- 3] Human Effort.
- 4] Labour is Heterogeneous.
- 5] Labour has Poor Bargaining Power.
- 6] Not Easily Mobile.
- 7] Supply of Labour is relatively Inelastic.
What are the three features of Labour as a factor of production?
(i)Labour is a vital factor of production. Wages are paid to the labour in lieu of the service. (ii)Efficiency of the labour can be increased through training. (iii)Farm Labourers come either from landless families or families cultivating small plots of land.
What are the characteristics of factors of production?
Features of the Factors of Production
- Land. In ordinary sense ‘land’ refers to the soil or the surface of the earth or ground.
- Labour. Labour is the active factor of production.
- Capital. Marshall says “capital consists of all kinds of wealth other than free giftsofnature,whichyield income”.
- Organization.
Why Labor is an important factor of production?
Labor represents all of the people that are available to transform resources into goods or services that can be purchased. It’s also important that a labor force is well educated and well trained to ensure that they can produce goods at peak efficiency and quality.
What are the characteristics of labour in production?
Characteristics Of Labour As A Factor Of Production : The following special characteristics or peculiarities distinguish labour from the other factors of production. 1. Labour is inseparable from labourers: A fundamental peculiarity of labour is that it is inseparable from the labourers.
How is labour as a factor of production mobile?
Labour as a factor of production is mobile, i.e. the laborers can relocate to the site of work. But there are many barriers to the movement of labour from one place to another.
What are the characteristics of a factor of production?
Characteristics of Labour as a factor of Production 1 Fair/good treatment of workers. 2 Providing a suitable and comfortable environment for workers. 3 Workers must not be forced to work extra time at low prices. 4 As a worker, the person must be honest and hardworking.
What is the definition of labour in economics?
In Economics, the term ‘ Labour ‘ is used for indicating any work, whether manual or mental, which is undertaken for a monetary consideration. It may be noted that any work done for the sake of pleasure or love or obligation is not called labour in Economics. There are some special characteristics of labour as a factor of production.
