(a) Define labour as a factor of production. (b) Explain five characteristics of labour.

Explanation

(a) Labour as a factor of production can be defined as the human effort used in production. It attracts usually some form of reward, for example, payment of wages and salaries.

(b) The characteristics of Labour are:

(i) Labour is mobile: Labour is mobile both geographically (from one place to the other) and occupationally (from one job to the other).

(ii) Skillful: Labour becomes skillful through education and training.

(iii) Labour controls and combines all other factors of production to make them more meaningful to the society.

(iv) Labour is perishable: Knowledge can diminish over time as a result of continued unemployment, under-employment, age and death.

(v) Labour can act on its own initiative.