Question

State with reason whether you agree or disagree with the following statement.
Labour is a perishable factor of production.

Answer 1

Yes, the statement given above is correct. This is because labour refers to the people who actually use the land and capital to produce goods. It refers to the exertion by the human body and mind with the objective of earning a living. It is considered to be perishable in nature because, if the labourer (worker) is absent for a day, that day’s labour (exertion) is gone forever and cannot be brought back.