Question

If labour is considered as an important factor of production then explain peculiar characteristics of labour.

Answer 1

Peculiar characteristics of labour are:

a) Labour is perishable: Labour is more perishable than other factors of production. It means labour cannot be stored.

b) Labour is less mobile: As compared to capital and other goods, labour is less mobile. Capital can be easily transported from one place to other, but labour cannot be transported easily from its present place to other places. c) Inelastic supply of labour: The supply of labour is inelastic in a country at a particular time. It means their supply can neither be increased nor decreased if the need demands so.

d) Differences in the efficiency of labour: Labourer differs in efficiency. Some labourers are more efficient due to their ability, training and skill, whereas others are less efficient on account of their illiteracy, ignorance, etc.