The factor of production called "labor" can be defined as the:
A) time spent by employees in the production of goods, but not services.
B) fraction of total costs spent on people.
C) number of worker-hours a business uses at a given time.
D) number of people a business has access to at any given time.

Question

Quizplus · Accepted Answer

Labor refers to the work or effort put in by workers or employees towards the production of goods and services. It is measured in terms of worker-hours, which is the amount of time spent by each worker on the job. Thus, option C is the correct definition of labor as it measures the number of worker-hours used by a business. Options A, B, and D are incorrect as they do not fully capture the concept of labor in economics.

The Factor of Production Called "Labor" Can Be Defined as The