Question

Explain about Labour in Economics and give four differences between Labour and Land as a factor of production.

Answer 1

Labour consists of all human efforts of body or of mind which are undertaken in the expectation of reward. Work done with love and affection such as singer is just singing for fun or practice it is not considered as labour as no one is paying for him/her, But if the same singer is singing at a concert it is considered as labour as he/she is being paid for performing.

Four differences between Labour and Land:

1) Land is a passive factor of production while Labour is a active factor of production.

2) Land is immobile while labour is mobile.

3) Supply of land is fixed while supply of labour is variable.

4) Land produces raw materials for production while labour provides services in production.