Labor
Definition
Labor refers to the physical and mental effort exerted by individuals in the production of goods and services.
Analogy
Think of labor as the fuel that powers a car. Just like how a car needs fuel to move, an economy relies on labor to produce goods and services.
Related terms
Human Capital: Human capital refers to the knowledge, skills, and abilities that workers possess. It represents an investment in education, training, and experience.
Wage: Wage is the payment received by workers in exchange for their labor. It can be hourly, weekly, or monthly compensation.
Unemployment: Unemployment occurs when individuals who are actively seeking employment are unable to find work. It is an important economic indicator that reflects the health of the labor market.
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