Which of the following describes 'labor' in economic terms?

In economic terms, 'labor' refers to the human effort that is applied in the production of goods and services. This encompasses all forms of physical and mental work that individuals contribute in an economic context. Labor is essential in transforming resources into products, and it includes not only manual labor but also skilled and professional tasks that require training and education.

This concept emphasizes the role of human input in the production process, highlighting how workers utilize their skills, knowledge, and physical abilities to create value. Understanding labor in this way helps to clarify the broader category of factors influencing economic output, such as productivity, wages, and employment rates.