All the activities involved in producing, distributing, and consuming goods and

services in a specific area. The economy is meant to allocate scarce resources among

competing users.

people should invest their capital in those activities that directly or in directly helps to

increase the growth of economy

Example

Labour

• Labour force • Labour unions • Objective of union labor in Pakistan• Characteristic of labour • Competetive equilibrium in the labor

market• And • Local labour market

 labor union  is an organization of workers that have banded together to achieve common goals such as

better working conditions.

• Favoritism • Low compensative benefits • Organization ignore this

principle “Right man for right job”

• Labour is perishable more than the other factor

• Weak bargaining power• Less mobile labour generally• Labour is human being not a machine• Difference in efficiency• Labour is active factor• Labour creates capital

In the labour market, labour services are exchanged and those

negotiations occurring between buyers and

sellers partly determine the placement of workers in jobs with

specified wages, benefits, and conditions of

employment.

• If firms and workers are searching for each other throughout with in country , the market

• is described as the national labour market. The search for highly skilled technical

• and professional occupations is often carried out on a national basis.

If the area of search is within the local community, the market

is described as the local labour market. Real

estate agents and taxi drivers are examples of

occupations where job search and recruitment typically occur

within a local labour market.