Question

Which of the following is salient feature of 'Labour" as a factor of production?

• A. Labour is an active factor of production.
• B. Labour is not perishable.
• C. Labour is separable from the labourer.
• D. All of the above.

Answer 1

Answer: (A)

Labour is an active factor of production.

As a factor of production, labour is the most important factor, since it is an active factor of production, and without human effort no utility can be added to the scarce resources to produce useful commodities.