Imagine a situation where labour is the scarce factor of production in

1.	Imagine a situation where labour is the scarce factor of production instead of land. Would the story of Rampur be different? How? Discuss in class.
Answer» 1. Usually land is a scarce factor of production. 2. If we imagine labour to be the scarce factor, the story of Rampur would be different. 3. The wages for the labourers will be high. 4. Not only farm labourers other labourers also get a benefit. 5. Government also fixes higher minimum wages.

Imagine a situation where labour is the scarce factor of production instead of land. Would the story of Rampur be different? How? Discuss in class.

Answer»

1. Usually land is a scarce factor of production.

2. If we imagine labour to be the scarce factor, the story of Rampur would be different.

3. The wages for the labourers will be high.

4. Not only farm labourers other labourers also get a benefit.

5. Government also fixes higher minimum wages.