Write a paper discussing factors of production. In a one-page (250-word) documen

Question

Write a paper discussing factors of production. In a one-page (250-word) document, address the following questions: How would you determine the demand for a factor of production? What factors influence the supply and demand for labor? Examine how those factors impact market demand for labor. How do labor unions try to increase the demand for labor? What has made labor unions such an integral part of the workforce? What is the difference between the rates of return for a renewable and nonrenewable resource? How do the rates of return on capital and land differ between a renewable and nonrenewable resource? How does the growing demand for food, fuel, and export affect the market for land?

Explanation / Answer

1. The type of factors of production employed is influenced by the type of product produced, the productivity of the factors and their cost.When factors of production are substitutes, a rise in the productivity or fall in the cost of one of them may result in a change in the combination of resources being employed. A fall in the price of capital goods, for example, might lead to the replacement of some workers with machines.

In other cases where factors of production are complements, a fall in the price of one or a rise in its productivity may increase the employment of all factors in a firm.

2. Wage rate
In most cases the supply of labour will increase with the increase in wages. This is because more workers will be attracted by a higher wage rate and moreover the existing workforce may be willing to work overtime at a higher wage rate.
Size of the population
An increase in population will lead to an increase in supply of labour.
Social factors
With more and more women entering the labour market the supply of labour has increased in the recent times.
Working age
Lowering the working age of will increase the supply of labour. An increase in the retirement age will increase the supply of labour.
Educational requirement
Jobs which need special training or educational qualifications will see less supply of labour as compared to jobs which don’t need high level of educational qualification.

3. Labor unioun try to increase demand for unionized workers in four ways. They are as follows
-They will try to appeal directly to consumers to increase the demand for union made goods;
-They will try restrict the supply of non-union made goods or substitutes;
- Increase the productivity of union members by minimizing conflicts through good union management;
-Unions will attempt to dictate the number of workers needed thus guaranteeing jobs for union members.

4. The rates of return equalizes comparable investment in case of renewable resources. the case is just opposite in rates of return of non renewable resources.

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