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Sally starts a business that aims to produces parts for a local factory. She hires Stephanie to work for her business and physically make her product. She rents a building for her business from Ed. She buys computers and machinery from Ellen. She borrows money from Michael's bank in order to get started. She hopes to convince Allen to actually purchase her product.
In the preceding passage, which person can be said to be contributing labor as a factor of production in Sally's business?
Labor is defined as the factor of production that is directly attributable to human effort and work. Labor is distinct from capital, in that capital describes inanimate goods that are essential to production, while labor describes the human element of production. Ed, Ellen, and Michael all contribute to the production of Sally's business, but they do so through the provision of capital. Stephanie contributes her own effort and work as a laborer for Sally. Meanwhile, Allen, as a customer, isn't directly involved in the production process.
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Frictional unemployment occurs when __________.
Frictional unemployment is the name given to a situation whereby people quit because they are dissatisfied with their jobs.
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Someone who works during a strike, rendering the strike impotent, is called a __________.
"Scab" is used, in a demeaning fashion, to describe someone who renders the effects of a strike less effective by continuing to work during the strike or by taking the job of a striking member of a union.
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The Iron Law of Wages states that __________.
The Iron Law of Wages is a famous economic term that originated during the eighteenth or nineteenth Century. It is actually difficult to track who first used the terminology or who first wrote about the idea; historians sometimes credit Malthus, Ricardo, Marx, Engels and so on. The law itself is well-understood: it states that the wage of a laborer will always fall to the very minimum needed to keep the worker working. Because of the massive competition in the labor market, employers have the power to pay their workers as little as possible, because if the worker refuses those terms, someone else will simply take the job. To rephrase: the money paid to a worker will always be the very minimum needed to keep the worker alive and working.
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What name is given to the working class in the writings of Karl Marx?
In The Communist Manifesto, the working class is referred to by the latin term “proletariat.” Marx argued that the “proletariat” were essentially enslaved by the bourgeoise and the upper class who controlled the means of production and thus all the wealth and property.
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