irfan Shafiq

8/2/2019 irfan Shafiq

1/21

14/03/2012 Irfan Shafiq


2/21

The resources used in production :

Labour

Land

Capital

Entrepreneurship14/03/2012 Irfan Shafiq


3/21

What is Labour?

Labour is human effort used in production.

-- mental effort-- physical effort

What is labour force?

A group of people in the population who areeither in employment or who are available foremployment



4/21

Productivity of labour:

Labour productivity = ------------------------------Total output

Total men working hours

= ? Units per working hours

Supply of labour:

Total number of units of labour available foremployment at a given time.It is usually measureas men-hours.



5/21

--A large population usually provides more labour

for production.

--We regard people who are aged between 15 and 65as the working population.An economy with a largeworking population tends to have a large laboursupply.



6/21

--The number of hours the workers are willing to workis more. The labour supply will be increased.

--Higher wage rate will attract more people to workor work more.The labour supply will be increased.



7/21

-- Better management (e.g. division of labour) can

increase the efficiency of productor. It can increasethe labour productivity.

-- Education and training can improve the skill of theworkers.So their labour productivity will increase.



8/21

-- The use of better machines will greatlyincrease the labour productivity.



9/21

-- Occupational mobility refers to the ease withwhich a factor can transfer from one industryto another industry.

e.g. 14/03/2012 Irfan Shafiq


10/21

-- e.g. A professional worker (e.g.professor) usually has high income.The costfor him to change the job is giving up the

income earned by his existing job.His cost ofchanging job is high. He seldom changes hisjob.Therefore his occupational mobility is low.



11/21

-- The restrictions of trade union will limit the

mobility of labour from one industry to anotherindustry.



12/21

-- Geographical mobility refers to the ease withwhich a factor can transfer from one place toanother place.

e.g.



13/21

-- If the regulations are very strict , thegeographical mobility will be lower.

--If the transportation becomes more convenient,the time for traveling is shorter or thetransportation expense is lower, the costof moving will be lower.The geographical

mobility will be higher.14/03/2012 Irfan Shafiq


14/21

--If a country has a good government and a goodpolitical system,the people are willing to work in

a country.The geographical mobility will bereduced.

--If a country can provide a good economicenvironment (e.g.better living standard),peopleare more willing to stay in the country for work.This will reduce the geographical mobility.



15/21

What is land?

Land is all the natural resourcesused in production.



16/21

--Land is a gift of nature.--Land is limited in supply.

--Land is immovable.



17/21

-- Land is totally geographically immobile.

--Land is quite occupationally mobile becausethe land uses can be changed.



18/21

What is capital?

Capital is man-made resources used

for future production of good andservices.



19/21

Capital can increase labour productivity.

Capital can increase the production capacity.

Capital is used for future production of

good and service.This can increase the livingstandard of the people in the country in the

future.



20/21

Functions of an entreneurship

He makes decisions aboutthe production.



21/21


Date post:	06-Apr-2018
Category:	Documents
Upload:	irfan-shafiq
View:	230 times
Download:	0 times

irfan Shafiq

Documents