(a) Define labour [4 marks] (b) Give four factors that affect the efficiency of labour in your country. [16 marks]

Answer Details

(a) Definition of labour. Labour is any physical or mental human effort directed towards the production of goods and services in return for a reward (wages or salary). As a factor of production, it refers to the human effort, skill, and ability used in production, and its reward is wages.

(b) Four factors that affect the efficiency of labour. Efficiency of labour is the ability of a worker to produce a large quantity of good-quality output within a given time.

1. Education and training. A well-educated, well-trained, and skilled worker performs tasks faster and better, so improved education and vocational training raise labour efficiency.
2. Level of technology and quality of equipment. Workers who use modern, efficient machines and tools produce more and better output than those using crude or obsolete equipment.
3. Health and welfare of the worker. Healthy, well-fed workers with good medical care and housing are stronger and more productive, whereas sick or poorly fed workers are less efficient.
4. Wages, incentives, and conditions of work. Adequate and prompt wages, bonuses, promotion prospects, and good working conditions motivate workers to put in more effort, raising efficiency; poor pay and conditions lower it. (Other valid factors: managerial and organisational ability, job security, and the natural ability and attitude of the worker.)