GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the human process of manufacturing goods and services
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the human skills and effort required in the production process
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the human skills required to acquire raw materials
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the human skills and effort required to manufacture goods and services
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Detailed explanation-1: -Labor is the human effort that can be applied to the production of goods and services. People who are employed or would like to be are considered part of the labor available to the economy. Capital is a factor of production that has been produced for use in the production of other goods and services.
Detailed explanation-2: -The second factor of production is labor. Labor is the effort that people contribute to the production of goods and services. Labor resources include the work done by the waiter who brings your food at a local restaurant as well as the engineer who designed the bus that transports you to school.
Detailed explanation-3: -Labor. All human effort that assists in production is labour. This effort can be mental or physical. It is a human factor of production.
Detailed explanation-4: -Labour is an active factor of production. It is the factor that starts production. Land and Capital alone cannot start production, so they are passive factors. They need the active factor of production, i.e. labour to be productive themselves.