The concept of work as a factor of production is denoted. The main factors of production. The price of resources is formed, considering such nuances

Labor is the process of conscious expedient activities of people aimed at creating the goods they need.

The labor process is associated with human energy, muscles, intelligence.

Such costs are considered economic theory as human labor spending.

Under the workforce means the ability of a person to work - the ability of physical and professional. This means that in order to work, you need to possess certain health and professional knowledge and skills.

Working force, thus exists before the labor process begins, which appears in the form of the function of labor. Since the workforce acts as labor in the potential, it is considered as a labor resource.

On the scale of all society, labor resources are represented by the part of the country's population that is capable of work, that is, it has a working force.

Labor as a production factor has quantitative and qualitative characteristics.

Quantitative characteristics reflect the labor costs determined by the number of working, their working time and intensity of labor, that is, labor tensions per unit of time.

Qualitative characteristics of labor reflect the level of employee qualifications. There is a general division of workers on qualified, semi-unqualified and unqualified for this level.

The qualified workers include employees, training and preparation of which they demanded a significant time that captured great information and are capable of carrying out difficult not so much in physical, but in intellectual plan labor operations. This category is primarily included by professional workers attributable in Russia to employees: teachers, doctors, lawyers, economists, government officials who have undergone long-term general and vocational training and carriers of significant information necessary for the implementation of complex works.

Highly skilled personnel include employees, the preparation of which did not require a long time and which, owning a limited amount of information, is able to produce labor operations of medium complexity.

Unclells consider employees who do not require special training. As a rule, learning necessary labor operations and obtaining necessary for this information occurs in the process of difficulty, as, for example, the labor of the farms.

The qualifications of workers are reflected in the degree of complexity of their labor. Unqualified work is considered simple, and qualified - difficult, as if erected into a degree simple work, or by simple work, multiplied by the corresponding complexity ratio.

The considered characteristics of labor are closely connected with each other, the disadvantages of some characteristics can be reimbursed by the advantages of others. For example, from the point of view of social production, the incomplete employment of the working population can be reimbursed by the increased working hours or the intensity of workers' labor. The growth in labor intensity compensates for the reduction of the working day and vice versa.

The ratio of the result of labor in the form of the number of products produced (P) to its costs per unit of time (ZT) characterizes labor productivity (PT):

Performance growth allows during these labor costs per unit of time to produce more products. Labor productivity depends on a number of factors that can be divided into subjective and objective.

Subjective factors include everything that is directly related to man as a subject of labor. First of all, this is his qualifications. Qualified labor per unit time creates more benefits than unqualified. Another factor is labor cooperation. An important role in ensuring productivity is played by his organization. The organization of labor should exclude the unproductive costs of efforts of workers, to ensure responsible attitude towards work, cause workers an interest in the results of its labor.

The objective factors of labor productivity include changes in real factors of production - land and capital acting as objects. For example, replacing less fertile plot of land on more fertile allows you to increase the harvest at the previous labor costs. Equipment of workers by machines leads to an increase in production volumes, even with reducing labor costs. Here you can see that the effect of objective factors leads to the fact that they replace the work as a factor of production. At the same time, the same patterns are manifested as when replacing the Earth. Labor replacement by capital can cause the growth of returns from each additionally involved the unit of capital until a certain point, after which the return begins to fall, that is, the effect of decreasing returns to capital is coming into effect.

It should be noted that subjective and objective factors affect labor productivity in close cooperation with each other. Although, we can talk about pure performance, defined only by subjective factors or only real. In the first case, we have to talk about the productive strength of labor, and in the second - about the productive strength of the Earth or capital. But usually performance is determined simultaneously by several factors. So, if the company has an old technique being replaced with a new one, then these changes may not provide an increase in performance if not

there will be appropriate changes in the work on the maintenance of equipment. So the growth of performance here is determined not only by capital, but also difficulty.

A close connection of labor and capital will be particularly clearly visible upon subsequent consideration of capital as a production factor.

What is labor as a production factor?

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Labor as a factor of production

Work— this is the process of conscious expedient activity of people aimed at creating the goods they need.

The labor process is associated with human energy, muscles, intelligence.

Such costs are considered economic theory as human labor spending. Under working force it is understood by the ability of a person to work. The ability is physical and professional. This means that in order to work, you need to possess certain health and professional knowledge and skills.

On the scale of society labor resources presented by the part of the population of the country that is capable of work, that is, it has a working force.

Labor as a production factor has quantitative and qualitative characteristics.

Quantitative characteristics reflect the labor costs determined by the number of working, their working time and labor intensity, that is, labor intensity per unit of time.

Qualitative characteristics of labor reflect the level of employee qualifications. There is a general division of workers on qualified, semi-unqualified and unqualified for this level.

TO qualified below workers, training and preparation of which they demanded a significant time that captured great information and are capable of carrying out difficult not so much in physical, and in intellectual plan labor operations. This category is primarily included by professional workers attributable in Russia to employees: teachers, doctors, lawyers, economists, government officials who have undergone long-term general and vocational training and carriers of significant information necessary for the implementation of complex works.

TO semi-skilled below workers whose preparation has not demanded a long time and which owning a limited amount of information is capable of producing high-quality operations.

Unqualified they consider workers who do not require special training. As a rule, learning necessary labor operations and obtaining necessary for this information occurs in the process of difficulty, as, for example, the labor of the farms.

the employment of the working population can be reimbursed by the increased working hours or labor intensity of workers. Labor intensity growth compensates for the reduction of the working day and

on the contrary.

The ratio of the result of labor in the form of the number of products produced (P) to its costs per unit of time (ZT) characterizes labor productivity (PT)

Performance growth allows during these labor costs per unit of time to produce more products. Labor productivity depends on a number of factors that can be divided into subjective and objective.

To subjective factors take all that is directly related to a person as a subject of labor. First of all, it is his qualification . Qualified labor per unit time creates more benefits than unqualified.

Production factors

Another factor is labor cooperation . An important role in ensuring productivity plays his organization . The organization of labor should exclude the unproductive costs of efforts of workers, to ensure responsible attitude towards work, cause workers an interest in the results of its labor.

TO objective factors labor productivity refers changes in real factors of production - land and capital acting as objects of labor. For example, replacing less fertile plot of land on more fertile allows you to increase the harvest at the previous labor costs. Equipment of workers by machines leads to an increase in production volumes, even with reducing labor costs. Here you can see that the effect of objective factors leads to the fact that they replace the work as a factor of production. At the same time, the same patterns are manifested as when replacing the Earth. Labor replacement by capital can cause the growth of returns from each additionally involved the unit of capital until a certain point, after which the return begins to fall, that is, the effect of decreasing returns to capital is coming into effect.

It should be noted that subjective and objective factors affect labor productivity in close cooperation with each other. Although, you can talk about pure productivity defined only by subjective factors or only real. In the first case you have to talk about productive labor force , and in the second. about productive power of the Earth or Capital . But usually performance is determined simultaneously by several factors. So, if the company's old technique is replaced with a new one, then these changes may not ensure the growth of performance if the appropriate changes in the work of the equipment will not occur. So the growth of performance here is determined not only by capital, but also difficulty.

A close connection of labor and capital will be particularly clearly visible upon subsequent consideration of capital as a production factor.

Question number 14.

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Labor as a factor of production

Factors - These are the main causes and conditions of production. The whole essence of production is to use production factors and creating with their help, based on their economic product. So it is the driving force of production, components of the production potential.

In the simplest presentation, the combination of production factors is reduced to the triad Earth, work, capitalincarnating the participation of natural and labor resources, means of production in creating a product of economic activity. As a fourth factor, a number of authors of books on economics are called Entrepreneurship. But the expansion of production factors from three to four does not exhaust their possible list. Let us dwell on the analysis of production factors somewar more.

Natural factor Reflects the influence of natural conditions for production processes, the use of natural sources of raw materials and energy, minerals, land and water resources, air basin, natural flora and fauna. Natural environment as a factor of production embodies the possibility of engaging in the production of certain species and volumes of natural wealth, transformed into raw material, from which the variety of material and material products is manufactured. Nature, including not only the land, but also the sun, represents the energy pantry, which, as is known, is not able to function without feeding the energy. Natural environment, the land is at the same time the production site, on which the means of production are placed, workers work. Finally, nature is important for production as a factor not only of currently operating, but also future production.

For all the importance, the significance of the natural factor in relation to production, he acts as a more passive than labor and capital. Natural resources, being mainly the initial raw materials, undergoes the transformation into materials and further into the main means of production acting in the role of active, creating factors. Therefore, in a number of factor models, the natural factor as such often does not appear in explicit form, which does not significantly reduce its significance for production.

Labor factor Presented in the production process of employees employed in it. The combination of labor with the rest of the production factors initiates the production process as such. At the same time, the "Labor" factor is embodied by all the diversity of species and forms of labor activity, which guides the production accompanying it and representing it in the form of direct participation in the transformation of substance, energy, information. So all participants, directly or indirectly involved in production, make their work into it, and the course of production depend on this overall labor, and its end result.

Although the factor of production is actually a work, given the pronounced resource nature of economic factors of production, quite often in the form of a production factor considering not the work itself as the cost of the physical and mental energy of a person or working time, but labor resources, the number of employed in production or able-bodied population. This approach is often used in macroeconomic factor models. It is also important to know and understand that the labor factor of production activities is manifested not only in the number of workers and labor costs, but also to no less - as and the effectiveness of their work, in labor recovery. In real calculations, not only the employed work is taken into account, but also its performance.

Factor "" Represents the means of production involved in production and directly participating in it. The labor factor in the form of labor resources, labor is involved in the production of only one side of its existence, so-called living labor. At the same time, the work for a person is rather one of the conditions, and not a goal, purpose, the image of its existence. As for the means of production, they are precisely for production, designed and entirely give themselves production. In this sense, capital as a factor of production is even higher than the employment factor.

Capital as a production factor can perform in different kinds, forms and differently measured. It was already noted that in the production capital they personify and physicaland turning into it cash capital. The physical capital is presented in the form of fixed capital (fixed assets), but it is legitimate to attach to him and working capital (working capital), which also plays the role of the production factor as the most important material resource and a source of production activities (individual authors do not include capital materials and consider them as an independent factor). When considering long-term, future production factors, capital investments in production are often considered as such as such. This approach is legitimate, since in a long period of money and other investments in production are transformed into production factors.

The fourth production factor reflects the impact business activity on the results of production activities. The entrepreneurial initiative affects the favorable effect on the outcome of production activities. At the same time, quantitatively set, measure the effect of exposure to this factor is quite difficult. The factor itself, referred to as entrepreneurship or entrepreneurial activity, does not have in contrast to labor and capital with generally accepted quantitative meters. Therefore, it is necessary to judge the impact of this factor on the volume or other results of production in high-quality than in quantitative terms. An entrepreneurial initiative increases the return of the employment factor in production.

Let's call another significant production factor. He is generalized, referred to him scientific and technical level of production. By its economic essence, the scientific and technical (technical and technological) level expresses the degree of technical and technological perfection of production. In the subsequent section of this chapter, this factor has been said in more detail. The high scientific and technical level of production leads to an increase in the return of the employment factor (productivity) and capital (fixed assets), i.e. manifests itself through other factors. At the same time, the scientific and technical level of production represents the self-active factor. Having contributed to the increase in the technical level and quality of products, technical and technological progress makes it possible to increase the demand for it, and this leads to an increase in prices and sales volumes, the cost of the production product. So scientific, technical, technological progress, raising the technical level of production, will create another significant production factor in his face.

As mentioned above, as part of factors can be allocated as independent, considered separately from capital (fixed assets) materialsused in production.

Production function and its factors

The theory of production factors is based on a certain extent to the use of the mathematical, model apparatus, which are factor models in the form of mathematical dependence, which binds the value of the resulting result of production with the values \u200b\u200bof production factors that caused this result. The most common type of such factor models became the so-called. A typical view of such a function is the dependence, formula that connects the maximum output (production volume) Q.with the factors on which this issue depends. In general, the production function can be presented in the following post:

Q \u003d Q (L, K, M, T ...),

where L., K, M, T ... - Production factors: work, capital, materials, technical level, etc.

Production functions can be used in macroeconomics, where they reflect the dependence of the total production volume in monetary terms from the general, integral values \u200b\u200bof the factors of production calculated for the economy as a whole. At the same time, production functions are applicable to individual sectors, types of production and even to the production scale. If the production function is used in microeconomics, it usually reflects the link between the volume of products manufactured (its maximum value) and the values \u200b\u200bused in the production of factors.

The production function of Kobba Douglas, which represents the widespread economic model is widely known. This feature has the form

Q \u003d a l α to β,

Q.- volume of products for a certain period, such as annual output;
but - permanent coefficient;
L.- labor factor, a surround indicator of the magnitude of labor resources;
TO- the magnitude of the capital used (the cost of fixed assets or the volume of capital investments in production);
α,β - Indicators of the degree satisfying the ratio α + β \u003d 1.

The above production function represents a two-factor model in which only variable labor and capital affect the volume of production. Desired production volume Q. can be obtained at various combinations of factors L. and K.What can be seen in Fig. 1, where the curves are depicted, which characterize the combinations of values \u200b\u200bof variable factors that ensure the predetermined volume of production.

Fig. 1. Product production volumes with different values \u200b\u200bof production factors

So, for example, achieve the volume of production Q. = Q. 0 possible with combinations of factors L 1. and K 1., L. 2 and K 2, L 3 and To 3, etc. If it is necessary to increase the volume of production to the values \u200b\u200b(q \u003d q 1, or q \u003d q 2 then with the specified coefficient but and indicators α and β In the production function will have to increase the values \u200b\u200bof factors L. and K. and find other combinations that correspond to, for example, point position BUT On Krivoy Q \u003d Q 1, or Points IN On Krivoy Q.= Q. 2 .

Curves whose points correspond to the combinations of production factors that provide the release of the same volume of products called. So in fig. 1 depicts three isochvants.

Production functions are included in the arsenal of the economic and mathematical apparatus of micro- and macroeconomics used mainly in theoretical studies, but they have practical applications.

Introduction 3.

Chapter 1. The main factors of production. four

Essence of production factors 4

Labor as a factor of production. 4-5
Capital as a factor of production. 5-6
Earth as a factor of production. 6-8
Entrepreneurship as a factor of production. 8-10.

Interchangeability and complementarity of factors

production. 11-13.

Demand, supply and equilibrium in the labor market. 14-25

Chapter 2. Labor resources as the main

Production factor. 26.

2.1. Labor employment of Russian students. 26-30

2.2. Efficiency of production development on the example

OJSC Kaustik. 30-34.

Conclusion 35-36.

List of references 37

Introduction

Production is the process of transforming one of the goods to others: production factors in finished products.

The relevance of this topic is that in order to begin production, it is necessary to have at least one who will produce, and of what they will produce. Therefore, in a certain sense, you can talk about two factors of production - man and nature. However, such a definition would be too generalized. Usually, four factors of production are distinguished in economic science: labor, capital, land, entrepreneurship. At the same time, under labor, the human activity, aimed at achieving any useful result. Capital is the entire accumulated supply of funds necessary for the production of material goods. Speaking of Earth, we mean not only land as such, but also water, air and all other benefits, which nature provides for the use of a person. Entrepreneurship is a special factor, with which there is a compound of the three factors of production listed above.

The purpose of the work is to study the production resources market and more study the labor market.

First, we will discuss more in more detail on the consideration of the factors of production as such, and then consider the problem of the interaction of these factors in the process of production, demand, proposal and equilibrium in the labor market.

Chapter 1. The main factors of production.

The essence of production factors.

Labor as a factor of production

Labor is the expedient human activity, with the help of which it transforms nature and adapts it to meet his needs.

Every work aims to produce any result, although some efforts a person takes the sake of themselves, such as in games, for their own pleasure. Such efforts are not considered as a work. In economic theory, working as a factor of production implies any mental and physical efforts attached by people in the process of economic activity.

Speaking of work, it is necessary to stop on such concepts as labor productivity and labor intensity. Labor intensity characterizes labor tensions, which is determined by the degree of spending physical and mental energy per unit of time. Labor intensity increases when the conveyor is accelerated, increasing the number of simultaneously serviced equipment, reduce working time loss. In the conditions of complex automation and production mechanization, the cost consumption of the physical energy of the employee is reduced, but the costs of mental and nervous energy increase. A high level of labor intensity is equivalent to an increase in the working day. Labor productivity shows how many products are made per unit of time. Progress of science and technology plays a decisive role for the growth of productivity of labor. For example, the introduction at the beginning of the 20th century conveyors led to a sharp increase in labor productivity. The conveyor organization of production was based on the principle of fractional division of labor, in which the worker performs monotonous operations from one to two movements. However, at a certain stage it became clear that the dismemberment of labor operations is not impossible, on this, in the fifties, the conveyor was used to change the conveyor with control devices. This again gave a sharp jump in labor productivity. Later flexible manufacturing systems appeared.

The scientific and technical revolution led to changes in the nature of labor. Labor has become more qualified, the time spent on professional training of personnel has increased, physical work is increasingly important in the direct production process.

1.1.2. Capital as a factor of production

The next factor of production is capital. The term "capital" has many meanings: it can be interpreted and as a certain stock of material goods, and as something that includes not only material items, but also intangible elements, such as human abilities, education. Determining capital as a factor of production, economists identify capital with the means of production. Capital consists of long-term goods created for the production of other goods (machines, roads, computers, hammers, trucks, rolling mills, buildings, etc.).

Another aspect of the category of capital is associated with its monetary form. The views on the capital are diverse, but all of them are in one: capital is associated with the ability to generate income. Capital could be identified as investment resources used in the production of goods and services and their delivery to the consumer.

Economists are considered to distinguish capital, materialized in buildings and structures, machines, equipment operations in the production process for several years, serving several production cycles. He is called the main capital. Another type of capital, including raw materials, materials, energy resources, is fully spent in one production cycle, embodied in the products manufactured. He is called working capital. Money spent on working capital is fully returned to the entrepreneur after the sale of products. The cost of fixed assets cannot be refunded so quickly.

Earth as a factor of production

The third factor of production is the Earth. One of the important characteristics of the Earth is its limited area. A person is not able to change its size at will, the land is impossible to "produce." The use of a certain plot of land represents the initial condition of everything that a person can do.

It should be remembered that the term "earth" is used in the broad sense of the word. It covers all the resources that are given by nature in a certain amount and over the proposal of which a person is not authorized, whether the land itself, water resources or minerals.

Certain areas of the earth's surface contribute to some particular human production activities: for example, the sea and rivers are used for fishing; Plots rich in minerals are necessary for the extractive industry; Some part of the sushi are used for construction (however, in this case, the choice does not nature, but a person). But, nevertheless, speaking of Earth, first of all, we mean its use in agriculture.

The properties of the Earth can be divided into data initially, i.e., natural and created artificially. A person can determine to effect on the fertility of the Earth, but this impact is not limitless. Sooner or later, the time will come when an additional return received from the additional application of labor and capital to Earth will decline so much that it will cease to reward a person for their application. We approach an important law concerning the land - the law of decreasing returns (in this case, it is referred to in quantitative terms), or decreasing yields.

The law of decreasing returns can be formulated as follows: "Each increment of capital and labor invested in the processing of the Earth creates, in general, a shorter increase in the amount of the resulting product, unless the specified increment has coincided with the improvement of agrotechnology" (Marshall A.).

It is quite natural that this trend is at first insufficiently treated with land, it begins to act only after the maximum level of return has been reached. The decreasing return on time can be suspended by the improvement of agrotechnology. But if the demand for land products will increase in impossible, then the tendency to decreasing return will become insurmountable.

The law of decreasing return applies to Earth only because, unlike other factors, it has one important property - limitations. Earth can be processed more intensively, but it is impossible to enhance the area of \u200b\u200bthe land processed, since the stock of land suitable for processing is unchanged.

Is the law of decreasing return on other data from the Nature of good, combined under the term "earth"? Take for an example a mine in which coal is mined. Indeed, over time, people faced with increasing problems, trying to get more minerals. All other things being equal, the continuous application of labor and capital to the mine will reduce coal mining. However, when we are talking about the use of land in agriculture, the return in the form of agricultural products is a renewable income, and the coal mined in the mine is the extraction of accumulated treasures from it. After all, coal is part of the mine itself. Imagine that one person can pump out water from the tank for thirty days, but thirty people will make this work per day, and when the tank is empty, no one will help to roll out water from there. Also from an empty mine just nothing to take. Therefore, the law of decreasing return does not apply to mining.

Entrepreneurship as a factor of production

The phenomenon of entrepreneurship acts as an integral attribute of market economy. Although the history of entrepreneurship goes deep into centuries, its modern understanding has developed in the period of the formation and development of capitalism.

In economic theory, the concept of "entrepreneur" appeared in the XVIII century. And often associated with the concept of "owner". His origins stood an English economist R. Cantillon, who first introduced the term "entrepreneur" into economic theory. According to Cantillon, the entrepreneur is a person with uncertain, non-fixed incomes (peasant, artisan, merchant, robber, beggar, etc.). He buys other people's products at a famous price, but to sell their own by price, he is still unknown. It follows that the risk is the main distinguishing feature of the entrepreneur, and its main economic function is to bring the proposal for compliance with demand in various commodity markets.

A. Smith also characterized the entrepreneur as the owner coming to an economic risk for the sake of the implementation of some kind of commercial idea and profit. He himself plans and organizes production, manages its results.

I. Schupeter calls a person's entrepreneur who takes the implementation of new combinations of production factors and thereby ensuring economic development. At the same time, Schumpeter believed that the entrepreneur was not necessarily the owner of production, the individual capitalist, and they could be the management bank or joint-stock company.

The union in one person of the owner and the entrepreneur began to collapse during the period of the loan. Any commercial bank is not the owner of all over capital, which he is in turnover. As a rule, his property applies to the authorized capital, which may be a relatively small amount. There is no tough communication between the entrepreneur and the owner, the entrepreneurship is not the function of only the owner, it can participate in persons who are not directly ownership.

To characterize entrepreneurship as an economic category, the central problem is to establish its subjects and objects. Subjects of entrepreneurship can be primarily individuals (organizers of the sole, family, as well as larger production). The activity of such entrepreneurs is carried out both on the basis of their own labor and with the involvement of the hired. Entrepreneurial activities can also be carried out by a group of persons related to contractual relations and economic interest. The subjects of collective entrepreneurship are joint-stock companies, rental groups, cooperatives, etc. In some cases, the state of entrepreneurship is also among its relevant authorities. Thus, there are three forms of entrepreneurial activities in a market economy: state, collective, private, each of which finds its "niches" in the economic system.

The object of entrepreneurship is the implementation of the 1st most effective combination of production factors in order to maximize income. Entrepreneurs combine resources for the purpose of manufacturing a new one, unknown to consumers of good; the discovery of new production methods (technologies) and commercial use of an existing product; mastering a new sales market; mastering a new source of raw materials; Reorganization in the industry to create their own monopoly or underlying someone else's.

For entrepreneurship, as a method of maintaining the economy, the main condition is the independence and independence of economic entities, the presence of a certain set of freedoms and rights. The independent of the entrepreneur should be understood in the sense that there is no leading authority over it, indicating that it is not possible to sell, and so on. But the entrepreneur is all the time depending on the market, from the dynamics of supply and demand, from the price level, i.e. from the current system of commodity-money relations.

The second condition of entrepreneurship is responsible for the decisions made, their consequences and the risk associated with it. The risk is always associated with uncertainty, unpredictability. Even the most careful calculation and forecast cannot be eliminated by the factor of unpredictability, it is a constant companion of business activities.

The third sign of entrepreneurship is the orientation for achieving commercial success, the desire to increase profits.

Entrepreneurship as a special type of economic thinking is characterized by a set of original views and approaches to decision-making, which are implemented in practical activities. The identity of the entrepreneur played the central role here. Entrepreneurship is not a genus of classes, but a warehouse of the mind and the property of nature. Being an entrepreneur means not to do what others do.

Interchangeability and complementarity of production factors.

The replacement of some factors of production by others is not absolute, since each factor does something that cannot do another. Therefore, it would be necessary to talk not about interchangeability, but rather about the complementarity of factors.

There is a maximum norm of technological replacement of production factors. We restrict oursentibinally with the consideration of production industrialization processes when manual labor costs are replaced by the work of machines and mechanisms. In this case, the maximum norm of technological replacement by physical capital, i.e. Machines are called the magnitude of the labor that each unit of operation can replace, without causing any increase or decrease in production volume. Such a combination of two production factors can be depicted with isoquate. In Fig. 1 along the abscissa axis, the hours of operation of machines (physical capital K) were postponed, and on the axis ordents - the cost of manual labor. At each point is isochvants, the limiting norm of technological substitution is equal to the tangent of tangent at this point multiplied by minus unit, because the reduction in labor costs requires an increase in the operation of machines. In our case, it will be equal to ΔL / ΔA

Fig.1. The combination of production factors is isochvant.

To explain, with what combination of production factors can be achieved the smallest value of total costs, it is necessary to re-apply to the concept of the limit product. To do this, we must compare the market price of each factor with the limit product, which is made with it. Suppose that the land plot is rented, and workers are hired to process it. Since the price of land is higher than the price of labor, it makes sense to replace land costs for labor. Such a substitution continues until the limit product obtained using a land unit will not be equal to the value for which the value of land exceeds the cost of labor. If, for example, the cost of one leased hectare of land exceeds the cost of labor 20 times, then the limit product from this hectare must be 20 times higher than the limit product obtained using a unit of labor. Only in this case can we talk about obtaining the maximum income on each ruble, spent on earth and work, since the production costs will be the smallest. Relying on these considerations, we can now formulate the general principle of replacement of factors of production.

To achieve the smallest costs by replacing more expensive factors of production, it is necessary to continue this process until the physical limit products obtained using these factors will not be proportional to the prices of the corresponding factors. As we have seen above, it is in this case that the physical limit product coming on the last ruble of one factor will be exactly equal to the utmost product obtained by the ruble of another factor. From here is easily located in the same factor in the process of substitution of one factor to others:

(physical volume of the limiting product A) / (price of factor a) \u003d\u003d (physical volume of limitB) / (price of factor c)

What are the advantages of the concept of "income from the limit product" before the "physical volume of the limit product"?

First, in practice they deal with cash calculations and therefore are interested, primarily income received from the sale of a physical limit product, and not by this product itself.

Secondly, with the help of a monetary comparison, it is much easier to judge the ratio between the value of the limit product and the price of the corresponding production factor, with which this limit is produced, or an additional product.

Thirdly, based on the revenue from the limit product, the demand curves are built on this or that factor of production.

Naturally, without the concept of "limiting product" it was impossible to determine the concept of "income from the limit product". In this, the internal connection between the physical limit product and the income from it is expressed. Relying on all of the above, we can calculate the income from the physical limit product obtained by the appropriate factor of production. It will be equal to the utmost income under this production volume multiplied by the physical volume of the limit product.

Thus, any factor of production will be used as long as the income from the limit product becomes exactly equal to the market price of this factor. It was during this period that the company will reach maximum profits, and it is assumed that the remaining factors used in the production of this product, according to its income from the limiting product, are equal to the relevant competitive market prices. It is obvious that if the price of some factor is raised, it will be less used in production and will gradually be substituted by other factors.

Demand, supply and equilibrium in the labor market.

Labor market

The subjects of demand in the labor market are business and the state, and the subjects of the proposal are households.

The magnitude of remuneration for work may vary in the competitive market in accordance with the laws of supply and demand.

The demand for work is in the reverse dependence on the value of wages. With wage growth, with other things being equal conditions, the entrepreneur in order to preserve the equilibrium must accordingly reduce the demand for work, and when the salary decreases, the demand for labor increases. The functional relationship between the value of wages and the size of demand for labor is expressed in the curve of demand for labor (LD) presented in Fig. 2. Here, on the abscissa axis, the value of labor requires (L), and on the ordinate axis is the value of the real wage (W / P). (W-nominee salary, p is the price level).

W / p.

Fig. 2. Curve demand for labor as a reflection of the descending limit profitability of labor.

Each point of demand curve on work shows what will be the demand at a certain amount of wages. The configuration of the curve and its negative slope show that the lower the salary, the greater the demand for work, and vice versa.

Offer in the labor market.

Otherwise, the situation is with the function of the supply of labor. It also depends on the magnitude of wages, but this dependence is direct: the higher the salary, the more the proposal of labor, and vice versa. Therefore, labor supply curve (LS) has a positive tilt (Fig. 3).

W / p.

Fig. 3. Labor proposal curve as a reflection of the increasing costs of lost opportunities for the use of labor.

According to the American economist, Samuelson's fields: "The total proposal of labor in society is determined by at least four indicators:

total population;

the fraction that the amateur population is in the total population;

the average number of hours worked out for the week and throughout the year;

quality, quantity and qualifications of such labor that will spend the workers "

For most families, the main source of income is labor. For example, families led by a married couple of non-elderly receive an average of 89% of their income through wages and a salary.

Consider the decisions of the individual, which is the head of the household, the remaining members of which are not workers in this period. Let his name is Fedor. Obviously, every day and every week at the disposal of Fedor is a strictly defined amount of time. He dedicates his work on hiring, the remaining time he spends on non-market activities: performs work on the house, raises children, rests. For simplicity, all non-market types of activity will be called leisure.

Fedor receives satisfaction (utility) and from leisure, and from consumption of all other goods (by himself and members of his family). To purchase these other benefits, he must earn their money equivalent, i.e. income. To do this, he needs to work on hiring and thereby sacrifice part of leisure. The task of Fedor is to find such a combination of leisure and consumption of other goods in order to maximize its utility.

Fig.4. Budget restriction when choosing between leisure and consumption.

The budget restriction of this problem is illustrating with Fig. 4. On the abscissa, we will postpone the number of hours dedicated to your leisure, N, according to ordinate - the consumption of goods, C. Even if Fedor does not work at all, there is the upper limit of leisure duration - the total number of hours per day or a week (24 hours and, respectively, 168 hours ). Denote this border of T. by definition, the time not spent on leisure is the employment time. For example, the length of the segment on a measures the overall duration of leisure per week, and the length of the segment N a T is the time dedicated to the work.

Let the hour expense of Fedor wages equal to w. Being a price fee, he perceives it as a given market. Fedor may devote all his time to leisure, this alternative reflects the point t on the horizontal axis: then the consumption of benefits will naturally be zero. Another extreme opportunity is to devote all the time to work. Then Fedor will be able to purchase benefits worth WT. This alternative reflects the point in the vertical axis. If Fedor gives leisure Na hours a week, it will be able to consume other benefits in the volume W (T - Na), which corresponds to the point A. It is clear that the budget restriction of Fedor is a direct W, and its tilt (- W) characterizes the payroll rate .

We draw attention to the fact that the budget restriction in the task of choosing between leisure and consumption (leisure and work) is similar to the budget limitation in the consumer's task. The inclination of the budget direct in this case also reflects the alternative value of one good in terms of another good. An alternative to leisure is rejected consumption; Consequently, the alternative value of the hour of leisure Fedor is equal to the rate of his wage! Budget constraint

rewrite in the following form:

The left part of the equation reflects the consumer costs for consumption and leisure, and in the right - the value of the time located at its disposal (English, Time Endowment).

Fig.5. Equilibrium combination of leisure and consumer

To determine which point on the direct W Fedor will choose, you need information about its preferences. As familiar to economists, the way to characterize the preferences of the decision maker is the family of indifference curves, in this case without distinction between leisure and consumption. In fig. 5 Such a map of indifference Fedor is imposed on its budget restriction. If the solution is internal, then it is located at the touch point of the budget direct and indifference curve, E 1. In the way, Fedor chooses N 1 hours of leisure and C 1 consumption units, from which it follows that it offers on the T - N 1 hour of its Labor per week.

Suppose that the Fedor wage rate dropped from W 1 to W 2. To increase your leisure for one hour, it should now refuse only from earning W 2, and not w 1. This situation is presented in Fig.6, and. Fedor's budgetary restriction is now represented by a more common direct line b 2, the slope of which is -w 2. Due to the reduction in the salary rate, the initial combination of consumption and leisure, E 1 is no longer achievable. Fedor must choose some point on the budget line b 2. When map of indifference shown in Fig. 6, and, this point is E 2. Salary reduction lowered the proposal of labor from Fedor on N 2 - N 1 hours. We note that the budget direct when the salary rate is reduced, W is rotated counterclockwise around the point T.

Fig.6. Fedor's reaction (a) and trifon (b) on reducing the wage rate.

The subject with another map of indifference would have reacted to reduce wages, possibly otherwise. For example, in Fig. 6, B depicts a map of dimensions of trifon, the budget limitations of which before and after reducing the salary rate are the same as Fedor. Let before changing the wage rate trif worked the same number of hours as Fedor. However, after the salary reduction, the trifor, unlike Fedor, will work more, increasing the proposal of labor on N 1 - n " 2 hours. Such a choice of trifon is explained by the peculiarities of its preferences regarding leisure and consumption.

A person can decide to work more, less than or as many hours a week in response to an exogenous reduction of the wage rate, depending on its preferences, which can be determined by the family composition, cultural traditions, finally, individual characteristics of character. For example, a possible explanation of differences in the preferences of Fedor and Trifon (Fig. 6) may be that Fedor is a lonely person, and the trifon has a larger family, or that he is just a workaholic.

Fig.7. The effect of replacement dominating the income effect.

We greatly enrich the analysis if we decompose the impact on the offer of labor by changing the wage rate, on the effect of replacement and the effect of income. In fig. 7 Receipt of Fedor's reaction to change its wage rates. The replacement effect will be defined if with a new salary rate to provide Fedor with an additional fixed income that will allow it to preserve the initial level of utility. To do this, move upwards in parallel, the budget direct B 2 is so so that it becomes tangent to the initial curve of indifference U 1 We will get straight b ’ 2 which relates to the indifference curve at the point e c. Thus, the replacement effect is a transition from point E 2 to point E C. On the other hand, the effect of income is an effect that occurs exclusively due to a reduction in income due to changes in the wage rate is the transition from E C to E 2.

Notice that in Fig. 7 The replacement effect generated by a reduction in the wage rate increases the number of leisure hours with N 1 to n c, while the income effect reduces their number with n c to n 2. As a result, the number of hours of Fedor's work is reduced by N2 - N ^, since the replacement effect exceeds the income effect.

Intuitively clear: when the salary decreases, the consumption of goods and services becomes more expensive in the sense that the employee must sacrifice great leisure for each additional consumption unit. Consequently, there is a tendency to replace consumption by leisure, that is, to reduce the proposal of labor while reducing wages. On the other hand, the reduction in the wage rate means that in the same number of hours of labor, the individual becomes poorer and it creates an income effect. As a rule, the direction of income effect depends on whether the good is normal or poor-quality. It is usually assumed ≈ and this is confirmed in statistical studies, ≈ that leisure is normal. Therefore, when the salary falls, the demand for leisure will be declined, with other things being equal.

So, on the impact on the proposal of labor, the effect of replacement from the reduction of the wage rate is always negative (reduces the supply of labor), and the effect of income is always positive (increases the proposal of labor). However, their absolute values \u200b\u200bcan relate differently. Fedor has a replacement effect exceeded the effect of income, and it reduced his proposal of labor. The trifon, the effect of income was in absolute value more replacement effect, so in response to a decrease in wages, he increased the proposal. Think what happens if the effect of replacement and the effect of income will be equal in their absolute size.

Equilibrium in the labor market

If you connect these two graphics - the demand curve (LD) and the proposal curve (Ls), then they will cross at the point (E). This point on the chart

(Fig. 4.) Complies with a certain equilibrium salary level (W / PE) and the labor supply (LE) specified by this level.

W / p.

LD * LS ** LE LD ** LS *

Fig.8. Equilibrium in the labor market.

At the point (e), the demand for labor is equal to the proposal, i.e. the market is in an equilibrium condition. This means that all entrepreneurs are willing to pay an equilibrium fee, find the necessary amount of labor on the market, and employees who are ready to offer their services for this salary are fully employed. This state of the market corresponds to the position of complete employment.

With any other wage other than (W / PE), the equilibrium on the market is broken, and two situations arise:

if the salary (W / P *) is higher than the equilibrium, then an excess of labor supply arises, which leads to unemployment;

if the salary (w / p **) is lower than the equilibrium, then the demand for workers exceeds the offer and explicit workplaces remain.

Both of these situations in the conditions of the market of perfect competition cannot be sustainable, they are subject to correction from market mechanisms towards restoring full employment.

Elasticity of demand for resource - This is the ratio of the percentage change in the consumption of the production resource to the percentage change in its price. The demand is more elastic on those factors that, with other things being equal, have a lower price. This allows interchangeability to exhibit expensive factors of production. High market prices cause a decrease in demand and switching it to alternative production factors with relatively low prices.

The factors of sustainable demand for resources are:

1) the effectiveness (performance) of the production resource when creating a product (for example, the more productive equipment is used in the enterprise, the less machines need to produce the planned amount of products);

2) the market value (or price) of the goods produced by means of a production resource; If the cost of some product is growing, it becomes beneficial to increase its production volume, so the demand for resources will also increase.

There are two main types of production resources markets:

the market of production resources in the conditions of perfect competition - neither the seller nor the buyer can affect resource prices. In this market at the same time there are a large number of sellers and buyers.

the market of production resources in conditions of imperfect competition is either the buyer, or the seller can influence the price of production resources.

The company - a monopolist on the market of finished products can monitor the price of the resource. As it strives to produce less products than competitors, it always needs less resources. I miss the bulk of resources, it affects their price.

The sectoral demand for production resources is the amount of demand for resources on the part of individual firms in the industry at each possible price for it. And the market demand for resources is the sum of all sectoral demands.

The demand for production factor depends on its limiting performance. The maximum productivity of the factor is the increment of a general issue with increasing this factor per unit. Imagine a weaving factory, where, according to the technology, one tipples serves ten machines. However, you can try to increase the number of machines, leaving the previous amount of weaves. Of course, the growth of the machine park will lead to an increase in production, but the weaves will not be able to serve twelve machines as well as ten, and fifteen as twelve. Therefore, despite the overall increase in products, the increase in production from each subsequent machine will be less than from the previous one. You can imagine the reverse situation: without increasing the number of machines, increase the number of weaves. Then every weaves will serve less machines, and it will do it better, however, the performance of the machines is limited, so the production per tver will be reduced.

This example brings us to an important conclusion: at a certain level of knowledge and technology, an increase in the investment of one production factor with a constant number of other factors leads to a decreasing productivity of this production factor (Fig. 5).

Figure 9.

Schedule in fig. 9 illustrates the situation when one factor is variable (work), and the other is constant (capital, in this case the machines). Initially, the limit (additional) product (MR) has some tendency to increase - after all, two or three weavers will be better served with machines than one weaves. But as the employees (with a constant machine constant) increases increases, the limit product will begin to decrease, since an increasing amount of variable factor (labor) will be connected to the constant amount of capital. The employees will continue until a certain limit. This limit is the established level of the market price of the labor, i.e. wages. This level and will prompt to the entrepreneur that it is necessary to stop on that worker, whose limiting product in monetary terms exactly is equal to wages 1. In this case, this is the number of workers in the amount of N man. The limit product of the N-th workers (it is shaded) corresponds to the wage (W). The maximum performance of the N-th employee is a measure of labor deposit (L) in the production of the product. There is a principle of competitive behavior: an economic entity in a market economy must constantly compare its limit income and limit costs. Limit costs in this case are the salary that the entrepreneur pays, and the limit income is a limit product in cash, created by each additional unit of labor. Equilibrium occurs when MRP \u003d W. In the conditions of perfect competition, the salary paid by the company by the employee is equal to the limiting costs for the purchase of a resource (MRC). Therefore, the formula can be written and so: MRP \u003d MRC.

Chapter 2. Effective use of labor resources as the main factor of sustainable development.

2.1. Labor employment of Russian students

Combining studies at the university with work - a widespread phenomenon among Russian students. In Russia, there is almost half of students of universities day form of training. The cost of work time depending on the specialty is presented in Table 1.

Table 1

Time spent on the paid work of "local" students *

depending on the specialty 2

Specialty	Medium time atrates, hours per week	Number of observations
Social Sciences (Economics, Law, Management, Sociology, etc.), except for pedagogy
Foreign language
Humanitarian sciences (philosophy, Russian language, etc.)
Mathematics, Programming, Computer Technologies
Natural sciences (physics, chemistry, biology, etc.)
Technical Science (construction, communication, production technology, etc.)
Medicine
Pedagogy
Cultureologists, art (music, painting, theater, etc.), design, architecture

* That is, students studying in the same city or village, where their parents live.

Employers in Russia pay experiences significantly more attention than indicators of the formal education of the applicant. When surveyed employers, respondents were requested to run on a scale from 0 to 5, to what extent the various characteristics of the document preparation presented by the applicant are taken into account. Table 2 presents the average and standard deviations of the ranking of the main indicators.

		Standard deviation
Good reputation, fame of the educational institution, issued a diploma of vocational education
Set of courses / disciplines specified in the liner for diploma
Estimates indicated in the insert to the diploma

Perhaps it will be useful to read:

Name of parameter	Value
Theme of article:	Labor as a factor of production
Rubric (thematic category)	Production

The concept of work as a factor of production is denoted. The main factors of production. The price of resources is formed, considering such nuances

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Labor as a factor of production

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Production function and its factors

Labor as a factor of production

1.1.2. Capital as a factor of production

Earth as a factor of production

Entrepreneurship as a factor of production