Factors of Production – Labour. Labour actually means any type of physical or mental exertion. In economic terms, labour is the efforts exerted to produce any goods or services. It includes all types of human efforts – physical exertion, mental exercise, use of intellect, etc. done in exchange for an economic reward.Click to see full answer. Similarly one may ask, why is labor considered an important factor of production?Therefore, another important factor of production is labor. Labor represents all of the people that are available to transform resources into goods or services that can be purchased. This factor is somewhat flexible since different people can be allocated to produce different things.Likewise, what are the 5 factors of production? 5 Factors Of Production Land (natural resources) Land and other natural resources are used to make homes, cars, and other products. Labor (workers) People have always been an important resource in producing goods and services, but many people are now being replaced by technology. Capital. Entrepreneurship. Knowledge. Additionally, what are the 4 factors of production? Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services.What are the factors of Labour? There are four basic resources or factors of Production: land, labour, enterprise and capital. Marx considered the “elementary factors of the labor-process” or “productive forces” to be: Labor. Subject of labor (objects transformed by labor) Instruments of labor (or means of labor).
