Economics Quiz: Land and Labor Concepts
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Questions and Answers

Which of the following statements about labor is true?

  • Labour cannot be separated from the labourer. (correct)
  • Labour can be postponed for future use.
  • Labour has a high bargaining power compared to employers.
  • Labour can be easily transported like capital.

    • What is one negative effect of division of labour on employment opportunities?

  • Reduction in employment opportunities (correct)
  • Enhanced worker mobility
  • Increased job satisfaction
  • Greater worker independence

    • Labour has a higher bargaining power compared to capital.

    False

    Capital is considered an indispensable factor of production.

    <p>False</p> Signup and view all the answers

    What is one reason why the supply of labour is considered inelastic?

    <p>The supply cannot be quickly increased or decreased in response to demand.</p> Signup and view all the answers

    What is the primary characteristic of capital regarding its nature?

    <p>Man-made</p> Signup and view all the answers

    Labour cannot be stored like _______.

    <p>capital</p> Signup and view all the answers

    Capital has both 'place mobility' and __________ mobility.

    <p>occupational</p> Signup and view all the answers

    Which factor contributes to the weak bargaining power of labour?

    <p>Poor organization and lack of reserves.</p> Signup and view all the answers

    Match the following factors of production with their characteristics:

    <p>Land = Immobile Labour = Low mobility Capital = Can depreciate</p> Signup and view all the answers

    Labour can be made to order like other goods.

    <p>False</p> Signup and view all the answers

    Labour is less _______ compared to capital.

    <p>mobile</p> Signup and view all the answers

    Which statement best describes a problem related to labour mobility under the division of labour?

    <p>Workers remain in the same job for long periods, limiting job movement.</p> Signup and view all the answers

    Match the characteristics of labour with their descriptions:

    <p>Inelastic Supply = Supply cannot be rapidly changed. Weak Bargaining Power = Labourers lack resources to negotiate better wages. Less Mobility = Labourers are reluctant to move far from home. Human Characteristics = Labourers have individual tastes and feelings.</p> Signup and view all the answers

    Capital does not need to be reproduced or replenished over time.

    <p>False</p> Signup and view all the answers

    According to John Stuart Mill, what is capital?

    <p>Accumulated product of past labour destined for future wealth.</p> Signup and view all the answers

    What is the primary reason that labourers cannot work like machines?

    <p>They require leisure after continuous work.</p> Signup and view all the answers

    A labourer sells his labour and is owned by the employer.

    <p>False</p> Signup and view all the answers

    What happens to the supply of labour when wages are increased?

    <p>The supply of labour decreases.</p> Signup and view all the answers

    Labour is both the beginning and the end of __________.

    <p>production</p> Signup and view all the answers

    Match the following factors affecting labour efficiency:

    <p>Ability and training = More efficient labour Illiteracy and ignorance = Less efficient labour High wages = Reduced working hours Demand for goods = Indirect demand for labour</p> Signup and view all the answers

    Which statement best describes the relationship between demand for goods and the demand for labour?

    <p>The demand for labour is indirect, driven by the demand for goods they produce.</p> Signup and view all the answers

    Labourers can easily calculate their cost of production, similar to machines.

    <p>False</p> Signup and view all the answers

    What is the effect of an increased wage on family labour participation?

    <p>Family members may stop working.</p> Signup and view all the answers

    Study Notes

    Land

    • Land is the physical place where economic activity occurs.
    • It's a free gift of nature, not a product of human effort.
    • The total quantity of land is fixed and cannot be increased or decreased.
    • Land is permanent and indestructible.
    • It's a primary factor in production, essential for all types of economic activity.
    • Land is passive – it cannot produce anything on its own.
    • Land is immovable.
    • Land has varying fertility levels.
    • The supply of land is inelastic—it cannot be increased or decreased based on demand.
    • Land can be used for many purposes, including agriculture, industry, and infrastructure.

    Labor

    • Labor is inseparable from the laborer.

    • Labor is perishable; its value disappears if not used.

    • Labor has limited mobility compared to capital.

    • Labor's bargaining power is typically weaker than that of employers.

    • The supply of labor is often inelastic in the short term.

    • Laborers are human beings with needs and desires, not machines.

    • Laborers sell their labor, not themselves.

    • Increased wages can sometimes decrease the supply of labor.

    • Labor is both the beginning and end of production.

    • Laborers vary in efficiency due to skills, training, and knowledge.

    • The demand for labor is indirect, dependent on the demand for the goods and services laborers produce.

    • It's difficult to determine the cost of labor production.

    • Labor creates capital.

    • Labor is an active factor in production, unlike land and capital, which are passive.

    • Employers need labor to turn inputs into outputs.

    • Labor is responsible for the quality and productivity of production.

    • Efficiency of labor can be improved through training and education.

    • Division of labor increases efficiency and productivity.

    Capital

    • Capital is man-made goods used for further production.
    • It is a passive factor of production.
    • Capital is highly mobile.
    • It is inelastic in the short run but elastic in the long run
    • Capital depreciates with use.
    • Capital is essential for increasing production.
    • Capital is a result of past savings.
    • Capital can be accumulated and used in subsequent production processes.
    • Capital accumulation is necessary for economic growth.

    Entrepreneur

    • Entrepreneurs need hard work and organization skills.
    • Entrepreneurs are willing to take risks for business goals.
    • They introduce innovation and ideas.
    • Entrepreneurs seek to reach objectives like exceeding income, gaining independence, and fulfilling personal goals.

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    Factors of Production Description PDF

    Description

    Test your understanding of fundamental economic concepts related to land and labor. This quiz covers the characteristics of land, its role in production, and key aspects of labor in the economy. Challenge your knowledge and learn more about these essential factors of production.

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