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Economic Project

Economic Project. Factors of production. Introduction. The resources used in production :. Labour. Land. Capital. Entrepreneurship. Labour. What is Labour?. Labour is human effort used in production. -- physical effort. -- mental effort. What is labour force?.

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Economic Project

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  1. Economic Project Factors of production

  2. Introduction The resources used in production : Labour Land Capital Entrepreneurship

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

  4. Productivity of labour: Total output Labour productivity = ------------------------------ 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.

  5. Factors effecting labour supply 1) Size of population --A large population usually provides more labour for production. 2) Size of working population --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.

  6. Factors effecting labour supply 3)The working hours offered by each worker --The number of hours the workers are willing to work is more. The labour supply will be increased. 4)Wage rate --Higher wage rate will attract more people to work or work more.The labour supply will be increased.

  7. Factors effecting labour producting 1) Better management -- Better management (e.g. division of labour) can increase the efficiency of productor. It can increase the labour productivity. 2) Education and training -- Education and training can improve the skill of the workers.So their labour productivity will increase.

  8. Factors effecting labour producting 3) Better capital -- The use of better machines will greatly increase the labour productivity. 4) Better health 5) Higher economic incentive

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

  10. Factor affecting occupational mobility 1) Cost of changing job -- 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.

  11. Factor affecting occupational mobility 2)Restrictions of trade union -- The restrictions of trade union will limit the mobility of labour from one industry to another industry. e.g.

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

  13. Factor affecting geographical mobility 1) Immigation and emigration regulation -- If the regulations are very strict , the geographical mobility will be lower. 2)The cost of moving --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.

  14. Factor affecting geographical mobility 3)Political factors --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. 4)Economic factors --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.

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

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

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

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

  19. Economic significance of capital 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.

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

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

  22. The end Yuen Ting Chi 4A(39) , Kwok Ching Nga 4B(16)

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