Question

Please explain

How manufacturing prices, productivity and labor costs in economics. And achievements of the fast, challenges for the future.

Answer 1

There are four factors of production in a economy:-

1. Land :- From land rent is generated.
2. Labour :- From labour wage is generated.
3. Capital :- From capital interest is generated.
4. Entrepreneurship :- From entrep. profit is generated.

Thus, any change in this factors affects the manufacturing prices, productivity and the labour costs. If the input cost is increased, it results in increase in price of the output, similarly if there is shortage for raw material or input the productivity decreases, also low wages leads to dissatisfaction amoung the workers, leading to reduced outputs, now in order to rise the wages, the output price is again varied, high pricing resulting in low demand.

Now, following are the few achievements of the fast, developing economy:-

1. High skilled workers.
2. Higher quality products.
3. Higher standard of life.
4. Zero defect in production.
5. Optimum utilisation of resources.
6. High Technology.

Some of the challenges faced are as:-

1. Unemployement, as technology substituted the workforce.
2. Low wages amoung existing workers.
3. Low wages resulting in poverty.
4. Low wages resulting in low demand.
5. Low demand leading to recession in domestic market.