ICSE Class 10 Answered

Importance of labour:

• Labour is an essential and active factor of production. This is because the capital, land and organisation cannot produce goods and services independently.
• The gifts of nature will remain unused without labour. Only labour can utilise the natural resources more efficiently and can develop the economic well-being of the people which in turn improve the economic development of an economy.
• All other factors of production will remain without any use if there is no demand for goods from labour side. Only when there is demand for good, more goods will be produced to satisfy their demand and hence investment will be encouraged in this process.
• Labour is the main source of wealth of our economy.