• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12

Labour is one of the four factors of production along with land, capital and enterprise

Extracts from this document...

Introduction

Labour: refers to the human characteristics of physical effort and skill, which are offered for sale in a market as a factors input to businesses, at an agreed price. (human effort required to produce goods and services). Often referred to a "human capital " Labour is one of the four factors of production along with land, capital and enterprise Labour market- refers to labour been exchanged at an agreed price in the form of wages and salaries between buyers the businesses and sellers the labour's. The labour market is a resource market often open to the influences of supply and demand. The market demand (buyers) for labour is generated by employers (production sector). Demand of labour tends to be influenced by the state of the economy, the need for labour in the production process and the expectations of producers for the future. The market supply (sellers) for labour is provided by employees (household sector). Supply of labour can be influenced by the age and health of the population, education standards, government legislation and entry restrictions imposed by labour organizations. These influences may be working at either the Micro (small individual firm of industry), or the Marco (economy wide) level. Micro demand for labour > The nature of a firms industry's production e.g. labour versus capital intensive production > Changes in consumers tastes e.g. organic foods instead of genetically modified food Macro demand for labour > General state of the economy > Average weekly wage level of the economy > An economy's supply of labour can be viewed in 'quantitive' terms (number of workers) and also "qualitative" terms (health education, motivation, skill level of workers) Micro supply for labour > Wages offered by a firm or industry > Specific skills required by a firm or industry > Reputation of a firm or industry Macro supply for labour > Population size > Growth rate > Level of natural of immigration > Age break up of the population The factors affecting the demand and supply of labour are "dynamic" in nature. ...read more.

Middle

Workforce actualization: Another labour market phenomenon that became significant during the 1990's was the trend for many employers to take on casual labour rather than full-time employees. Distributive justice: One problem area with regards to age determination is the notion of an equitable share of the nations income or GDP. In other words, how much should go to wage and salary earners, how much should go to companies as profit, and how much to other forms of income? Workplace reform: The impact of technology brought a realization that the production methods of previous decades could no longer be sustained if our industries were to remain competitive. Employer's trade unions and governments acknowledged the need for change. Certified agreements: Australian workplace agreements: Is a negotiated agreement between a group of employees and their employer, which may involve some variations to the set award conditions. Safety net: A system of available payments in cash or in kind which keep people incomes form falling below some socially accepted minimum level. Employment advocate: Who applies a no-disadvantage test to ensure that neither party to the agreement is to be adversely affected by the proposed agreement. Production: The process of combining land, labour, capital and enterprise to provide goods and services into the economy. Factors of production: The broad categories under which a nation's resources that go into creating goods and services to satisfy human wants can be classified. E.g. land, labour, capital, enterprise. Labour-intensive production: Process using a high proportion of capital relative to labour input. Market: A place or situation where buyers and sellers interact for purpose of trade or exchange. Law of diminishing marginal productivity: States that at a certain point of diminishing returns occurs. This states that for every extra unit of production used, you will not receive the extra output (due to labour cost, crowding effect). Factor specialization: An economy becomes more advanced they tend to specialize their of the factor in the production process. ...read more.

Conclusion

Seats: (Stock exchange Automated Trading System). The computer system used for trading shares in companies listed by the Australian Stock Exchange (ASX). Secondary market: The markets in which shares are bought and sold by stockbrokers on the behalf of investors. Share register: An official record of shareholders details. E.g. the number of shares held, name, address, which is required of each public company by the Australian Stock Exchange (ASX). Stockbroker: A member or agent of the Australian Stock Exchange (ASX) who is authorized to buy and sell securities for investors in the stock market. All ordinaries index: Measure of the level of share prices at any given time to determine the overall performance of the share market. Blue chip shares: Shares of a company known for its ability to make profits in good and or bad times. Capital gain: Profit from an increase in the capital value of assets. Dividend imputation: A tax rule that enables share holders to claim tax credit for the tax that a company has already paid on its profits. Dividend yield: The sum total of dividends paid by a company during the financial year dividend by the number of share issued. Earnings per share: A companies' net profit divided by the total number of shares in the company. Fully franked dividends: Dividends on which full company tax has been paid by a company and for which investors is entitled to an imputation credit on the full amount. Portfolios: investor's holdings of a range of assets (property, bonds, shares etc). Price/earnings ratio: A companies share price dividend by its earning per share. Bid: Price at which an investor is prepared to buy shares. Brokerage: The fee charged by a stockbroker for services in buying and selling shares. Chess: (Clearing, House, Electronic, Sub register, System). The stock exchange system to computerize the transfers and settlement producers for Australian Stock Exchange (ASX) transactions Globalization: Is the spread of the phase of production activity to various internal locations with overall locations with overall co-ordinations by a single firm or a network of forms. E.g. as is required to produce a 'world car'. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Bellway Plc is a holding company with subsidiaries; its main subsidiary company is Bellway ...

    The ratio remains very high through the years, which indicates Bellway is easily able to meet its interest obligations from profits. Bellway uses long-term debt to finance operation keeping equity issues stable. They also used small short-term finance in 2001, 2002 & 2004 to help recover short-term cash situations.

  2. The Nature of Macroeconomics

    * Economic growth = increasing real GDP * Expanding national productive capacity, increasing the quantity of goods and services produced in an economy * Nominal GDP = current prices x output * Real GDP = constant prices x output What is the significance of economic growth?

  1. Toyota Motor Company Limited

    Tundra, which is built at its Indiana plant, Toyota Motor Manufacturing, Indiana, Inc. (TMMI). Production in Alabama will get under way in 2003 and plans call for an annual output of 120,000 engines. Toyota has also decided to begin building the RX300 at its production base in Canada, Toyota Motor Manufacturing Canada Inc.

  2. Chinese car market overview. Citroen case study

    CITROEN IN CHINA A) THE HISTORY OB BUSINESS 1987 : Contacting between Citro�n and SAW - The Motor Second Work - (become D�ng Feng Motors), 2nd Chinese trucks producer 1988 : First offer of Citro�n and tests of rolling in China.

  1. Evaluate the impact of Nike's outsourcing strategy and factory location on the host nation

    only barely cover the cost of living meaning there is less money for people to spend in the local economy. This argument suggests that Nike doesn't impact Host nations economies. However Nikes code of conduct has been put in place to protect workers so they benefit from Nikes operations by providing minimum wage requirements and training opportunities.

  2. Free essay

    Do high house prices in Trafford deter key public sector workers from seeking a ...

    An alternative is a fixed rate mortgage. This is when the interest rate is fixed and the base rate doesn't affect your mortgage. This type doesn't have the uncertainty that a variable rate mortgage has. Mortgages can also be repaid interest only.

  1. Discuss the policy options the Australian Government can use to achieve external stability

    to encourage a higher level of savings and lower CAD than in previous decades. Additionally, as apart of macroeconomic policy monetary policy may be used to smooth out the effects of fluctuations of the business cycle as well as to influence the level of economic activity, output, employment and prices, affecting the overall level of demand.

  2. Living Wage

    As a result, wages are very low. However, discussing about the just wage catechism of the Church telling us about it being the legitimate fruit of labor is one thing. But paying a just wage and still staying in business is a more difficult matter for companies.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work