Economics is considered to be one of the dreaded subjects. Often students are found confused with the terms of economics. Students are often found to be terrified to take an economic test. Here, in this blog on Problems of labor as a factor of production homework answers, we will be discussing about the factors of productions that is the land, labor, capital, and entrepreneurship. But our main aim of discussion would be one of the most important factors which are the labor and the problems regarding the working of the labor.
What is meant by factors of productions? What are the different factors of productions?
Production functions are nothing but the inputs used in the production process. The factors of productions basically help to change the raw materials or the inputs to some finish goods and services which are the final output. We all know in economics there are four basic factors of productions. They are land, labor, capital and entrepreneurship. The factors of productions can be further classified into primary and secondary factors of productions.
The returns earned by each factor of productions are different.
- Land and natural resources–
All those natural goods such as land, water, soil, minerals and other natural resources come under this category. The payments and the incomes that the land owners obtain are known as ret.
- Labor –
Labor is nothing but the human effort that is spent in order to produce the goods and services. Labor earns wages.
- Capital –
Capital are all the human-made goods that are invested and used in the process of productions is known as the capital. These include the materials, machinery, and cash.
The basic work of the entrepreneur is to control and give direction to all other factors of productions. The return of the entrepreneur is to earn profit. He/she takes the incentive to work so that he/she can earn profit.
Amidst all of this, it is the problems of labor as a factor of production homework answers is something that tops the most problematic list. Finding answers to this can be a real issue.
Basic concept about Labor as a factor of production and Labor economy
Now you know how labor work as a factor of production. It earns wages in return for the services that it gives. Marx considered laboring the elementary factors of production. He considered that the elementary factors of labor process could be further divided into three basic categories that are the labor himself, the tools used by the labors and the subjects of labors. We have already discussed what labor is. By “tools” Marx meant the instruments used by the labor in order to carry out the production process. The “subjects of labor” is nothing but the natural resource and raw materials.
Problems of labor as a factor of production:
Talking about the problems of labor as a factor of production homework answers, labor does have some problems. They have sentiments, and unlike the other factors of productions, labor cannot be used in any way that the own wants to use. They need a proper work place, fair wages, bonus and proper treatment. Now let us come to the main problems that are faced while using labor as a factor of production.
- Exploiting labor forces–
One of the major problems faced is the exploitation of the labor forces. Exploitation is nothing but when an actor uses the other to extract their own benefits is known as exploitation. Often it is seen that labors are exploited by the owners. Exploiters are none but the one who has complete control on the goods and services.
They are the one who earns profit and pays wages to the labors. It is often seen that the profit is not adequately distributed amongst the labors. These are when the problems start to creep in as the labors revolts, and as a result, the production of the industry is hampered.
- Problem of inefficient management–
Another major problem is inefficient management of the labors. This generally happens due to overcrowding of labor. You must have heard the very popular saying “too many cooks spoil the broth.”This is applicable in this case also. The problem of mismanagement occurs when the number of labor exceeds the availability of the machines on which they work.
As a result the productivity of the firm also falls. This phenomenon is also known as the diminishing return where every additional labor would result in the fall of the total output.
- Child labor–
This can be another problem. Many times it is found that children are exploited. This is another problem of labor as a factor of production.
- Labor market and unemployment–
Talking about the Labor economy, the functioning of the labor market occurs but the intersection of the workers and the employee. It depends on the supply of the worker and the demand for worker. With a change in labor demand or labor supply, the level of employment in the economy changes. Due to the change in labor demand and supply, the several types of unemployment occur.
This is another problem of labor as a factor of production homework answers. According to the labor economy, unemployment can be of four types: frictional unemployment, structural unemployment, natural rate of unemployment and demand deficit or cyclical unemployment.
Thus, these were the basic problem of labor as a factor of production homework answers. The following educational blog would be helpful to grasp the basic concept of what is labor and what are the problems regarding labor as a factor of production.