FACTORS OF PRODUCTION
These are resources or inputs which are used during the production process.
The factors of production are classified into;-
Refers to all unworked natural resources which are found either in or on the earth’s surface and used in the production for goods and services. It includes mineral resources, water bodies, soils vegetation etc.
FEATURES OF LAND
- Land is a gift of nature. That it is not a product of human labour. It is naturally found e.g. gold deposits are naturally found.
- Land cannot be moved from one place to another but land has several uses such as farming, grazing, construction etc.
- Land is fixed in supply. it is not possible to measure the size of land. E.g. increase of rent will not call for more land to be available or supplied.
Other argues that land can be increased through land reclamation.
- Land differ interns of fertility. It is of different grades depending on the natural fertility.
- Land provides a site for production. That is all production activities are carried out on land.
- Land obeys the law of diminishing marginal returns. It states that “Other factors remaining constant,” application of more and more units of variable inputs on a given fixed inputs (land), will lead to the marginal product of the variable input to diminish after s sometime”.
Labour is the human effort applying in production of goods and services to satisfy human wants.Labour is the human effort but all human effort is not labour until applying on production and rewarding considerations.
TWO TYPES OF LABOUR
(i)Manual labour:are physical effort and very small % of mental uses on application of productions works in a factory or otherwise contributes his effort.
(ii)Mental labour:These are intellectual works 70% applying mental/brain and very little effort on production of goods and services.
e.g Teachers,Doctors and engineers.
FEATURES OF LABOUR
- Labor cannot be separated from a labourer.
- Labor is highly mobile (can move from one place to another or shift from one job to another).
- Labor cannot be stored if not employed.
- Labor is not homogeneous. They differ in efficiency.
- The reward for labour is wages
- Labor is not motivated only by material incentives but also moral incentives.
EFFICIENCY OF LABOUR OR LABOUR EFFICIENCY
It refers to the quantity and quality of output a worker can produce for a given period of time. It refers to how productive the worker is.
It is measured as the ratio between total product and number of labour employed.
Efficiency of labour is also called productivity of labour.
Efficiency of labour = (Total product)/(no .of labour employed)
FACTORS WHICH INFLUENCE PRODUCTIVITY OF LABOUR
- Efficiency of other cooperating factors such as the efficiency of the working tools / capital.
- Health of the workers. Hunger and sickness lower the workers efficiency.
- Wage rate. High wage rate motivates a worker to become efficient.
- That the provision of incentives such as frees meals, free housing, helps to rise the efficiency of a worker.
- The level of education and training. Workers who are highly educated or trained are more efficient than those who are not educated or trained.
- Natural talents or abilities. Some people are born intelligent of which become more efficient.
- Working conditions. Good job supervision will help in increasing the efficiency of the workers
- Working experience. Workers with experience tend to be more efficient than those without experience.
Weather conditions. A bad weather condition such as drought lowers the efficiency of labour while favorable weather conditions raises the efficiency of the worker
MOBILITY OF LABOUR
It refers to the case with which a labour or worker either moves from one geographical area to another or shifts from one employment to another.
It is the ease in which labour can move either geographically or occupationally.
TYPE OF LABOUR MOBILITY
(i)Occupational mobility.i.e. a labour moves from one employment to Another employment such as from being a doctor to teaching.
(ii)Geographical mobility. A worker moves from one working place to another working place.
(iii)Vertical mobility. Move from lower position to a higher position.This may be due to long period of education training and promotion.
(iv)Horizontal mobility. A worker moves from one work place to another work place with the same working rank or position. Example if an account leaves his present job and joins another for the same job.
IMPORTANCE OF LABOUR MOBILITY
- It helps the workers to increase their earnings.i.e. Move from lower paying to the high paying jobs.
- It helps to reduce the problem of unemployment. People move from areas with no employment to areas with employment opportunities.
- It promotes the sense of national hood and international community.
- It promotes the transfer of technology and culture.
It enables the workers to move to those areas which are competent or specialized