Now assume that 100 workers are banned from working in the economy. Identify what would be the potential problems that this economy would face.
If 100 workers are banned from working in the economy, the production of both products will reduce. Assuming that only 200 workers are available for wheat production, only 6.6 bushels will be produced. On the other hand, if the 200 workers were to engage in milk production, only 20 crates will be produced.
Show that you have a deeper understanding of the factors of production by indicating what the other 3 factors of production besides labor are.
The three other factors of production include land, capital, and enterprise. Land is inclusive of all the natural resources. Capital includes all the man-made resources. Enterprise, on the other hand, is a factor that brings every previous resource together for the purpose of production.
Enumerate 3 possible solutions to solve the problem in point #1
Firstly, the company can introduce automated machines to ensure that the production of wheat and milk remains at the same level. Production can also be maintained by implementing an increase in the working hours. The company may decide to pay its workers overtime costs to ensure that they are attracted towards inputting more hours hence increased production. Thirdly, the problem can be solved by ensuring that there is a significant reduction of time wastage within the day. For instance, the company may decide to implement rules and regulations that ensure maximum utilization of working hours and productivity.
Assess how one of your possible solutions (enumerated in point #3) is implemented in the economy. (In other words, if it was up to you, what could you do to solve the problem?).
The third solution, which involves the reduction of time wasted, can be implemented in several ways. Firstly, time wasting can be reduced by use of a clocking system. Workers may be required to fill in details of their arrival time and duration of stay at the workplace through this system. Secondly, surveillance cameras can be placed in strategic areas to ensure close monitoring of the workers during production. This will ensure maximum productivity as well as an increase in the rate of production.
Scrutinize whether the solution you picked was the right one, would you rather improve another factor of production besides labor?
Apparently, I wouldn’t improve any other factor of production besides labor. This is because labor is closely related to the amount of production.