The resources used in production : Labour Land Capital Entrepreneurship

What is Labour? Labour is human effort used in production. -- mental effort -- physical effort What is labour force? A group of people in the population who are either in employment or who are available for employment

Productivity of labour: Labour productivity = Total output Total men working hours = ? Units per working hours Supply of labour: Total number of units of labour available for employment at a given time.It is usually measure as men-hours.

--A large population usually provides more labour for production. --We regard people who are aged between 15 and 65 as the working population.An economy with a large working population tends to have a large labour supply.

--The number of hours the workers are willing to work is more. The labour supply will be increased. --Higher wage rate will attract more people to work or work more.The labour supply will be increased.

-- Better management (e.g. division of labour) can increase the efficiency of productor. It can increase the labour productivity. -- Education and training can improve the skill of the workers.So their labour productivity will increase.

-- The use of better machines will greatly increase the labour productivity.

-- Occupational mobility refers to the ease with which a factor can transfer from one industry to another industry. e.g. →

-- e.g. A professional worker (e.g. professor) usually has high income.The cost for him to change the job is giving up the income earned by his existing job.His cost of changing job is high. He seldom changes his job.Therefore his occupational mobility is low.

-- The restrictions of trade union will limit the mobility of labour from one industry to another industry. e.g.

-- Geographical mobility refers to the ease with which a factor can transfer from one place to another place. e.g. →

-- If the regulations are very strict, the geographical mobility will be lower. --If the transportation becomes more convenient, the time for traveling is shorter or the transportation expense is lower, the cost of moving will be lower.The geographical mobility will be higher.

--If a country has a good government and a good political system,the people are willing to work in a country.The geographical mobility will be reduced. --If a country can provide a good economic environment (e.g.better living standard),people are more willing to stay in the country for work. This will reduce the geographical mobility.

What is land? Land is all the natural resources used in production.

--Land is a gift of nature. --Land is limited in supply. --Land is immovable.

-- Land is totally geographically immobile. --Land is quite occupationally mobile because the land uses can be changed.

What is capital? Capital is man-made resources used for future production of good and services.

Capital can increase labour productivity. Capital can increase the production capacity. Capital is used for future production of good and service.This can increase the living standard of the people in the country in the future.

Functions of an entreneurship He will bear the risk. He makes decisions about the production.

Separation between management and ownership Managers Make decisions Is not an entrepreneur. Shareholders (owner) Bear the risk entrepreneur

Yuen Ting Chi 4A(39), Kwok Ching Nga 4B(16)