Question

Explain why the following types of behaviour are important in a productive market economy and the role of formal and informal institutions in generating that behaviour:

(a) Lining up;

(b) Paying attention to professionals and experts;

(c) Arriving on time for work, meetings and appointments

Answer 1

Labour efficiency is very essential for a productive economy. Captial has no value if the labour lacks the skill to operate it. Both formal and informal institutions need to function in a way that constantly upgrades it's labour efficiency and disciplining the workforce is one amongst the ways to increase labour productivity.

Labour incurs more cost as an economy develops because skills and technology never stop upgrading. So the following features have a major role in improving the human capital:

1. Lining up: The demand for jobs indicates that the workforce is adding up every day which is a good sign of an active economy.

2. Paying attention to professionals and experts: Labour with advanced skills have the potential to impart their knowledge on the new coming workforce.

3. Arriving on time for work, meetings and appointments: This is a sign of courtesy in a work environment which people adopt in order to secure respect and consideration.