Theory question 108
Labour MarketSection B (answer four questions only from this section)
(a) Define labour as a factor of production.
(b) Explain five characteristics of labour.
Show the model answer
Model answer
(a) Labour is human effort, physical or mental, used in producing goods and services for a reward (wages).
(b) Labour is a human factor and cannot be separated from the labourer.
Labour is perishable: a day's labour not used is lost.
Labour is mobile (occupationally and geographically).
Labour is not homogeneous: workers differ in skill and efficiency.
Supply of labour cannot be changed quickly; it depends on population.
Labour has weak bargaining power individually and can form trade unions.
Labour is an active factor; the reward is wages.
Explanation
Explain each characteristic in a sentence.