What is Land? Explain its features. |
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| Ans : Land refers to all natural resources which are free gift of nature. In economics, land includes more than surface of earth. Therefore, land includes all gift of nature available to mankind- both on the surface and under the surface. For example, soil, rivers, waters, forest, mountains, climate, air, sunlight etc.
Features of land:
a) Land is fixed in supply:- Land is free gift of nature. Man cannot increase or decrease the existing supply of land.
b) Land is free gift of nature:- Land is not a man-made factors of production. It is free gift of nature. Man can use it and can only improve or modify it for it’s use.
c) Land is immobile factor of production:- Land cannot be moved one place to another. Land remains rigid forever but it has alternative uses.
d) Land is indestructible:- Land is indestructible factor of production because the physical structure of land cannot be destroyed.
e) Land differs in fertility:- All land is not of same quality. Some pieces of land are more fertile and some are less fertile.
f) Land is subject to diminishing marginal return:- As we make more and more intensive use of land by using more and more units of labor and capital, the additional output of land will decrease after certain period of time.
G) Land is passive factor:- Land is passive factor of production and it becomes productive only when labor and capital are applied on it.
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