Category: Labor

Capital, natural resources, entrepreneurship and labor are the four essential components in the production of goods and services in an economy. The quantity and quality of that individuals supply is an important factor in determining the economy’s level of production and rate of growth.

People with jobs, people looking for jobs and businesses seeking employees make up what is known as the labor market. This interaction between people supplying labor services and businesses demanding workers’ services is what determines the wages and salaries paid to employees and the total number of people employed.

Labor represents the human factor in producing the goods and services of an economy. Just as there are markets for cars, bread and steel, there is a market for the services people provide. What helps distinguish it from, say, the steel market is that labor is made up of people who, in effect, rent their time to businesses for certain periods—for instance, an hour or a year.

People provide their labor to businesses in exchange for wages, and they trade their unpaid leisure time for paid work time to make a living and to be able to purchase goods and services. Businesses, in turn, use it to produce goods and services demanded by consumers.

Dallas Federal Reserve Bank

darby

Landmark Supreme Court Case: U.S. v. Darby Lumber (1941)

U.S. v. Darby Lumber (1941) is the 78th landmark Supreme Court cases, the 33rd in the Economics module, featured in the KTB Prep American Government and Civics Series designed to acquaint users with the origins, concepts, organizations, and policies of the United States government and political system. The goal is...

drexel furniture

Landmark Supreme Court Case: Bailey v. Drexel Furniture Company (1922)

Bailey v. Drexel Furniture Company (1922) is the 46th landmark Supreme Court case, the twentieth in the Economics module, featured in the KTB Prep American Government and Civics Series designed to acquaint users with the origins, concepts, organizations, and policies of the United States government and political system. The goal...