Land
as a Factor of Production:
Meaning
and Definition:
The term land in
economics is used in a special sense. It
does not
mean soil or earth surface alone. Land in economics means
natural
resources. It includes
all those things which are found under and over
the surface of earth. In the words of Marshall:
"The land
means the material and the forces which nature gives freely to
man's aid in land and water, in air
and
light and heat".
Characteristics/Features:
The main
characteristics/Features of land as a factor of production are as
follows:
(i) Supply of
land. The supply of land from the point of view of the
economy
is perfectly inelastic. However, from
the point of view of a firm, it is relatively elastic.
(ii) No geographical
mobility.
Land has no geographical mobility. It cannot
be
shifted from one region to another region.
(iii) Land differs in
fertility.
All the plots of land are not homogeneous. They
differ in fertility.
(iv) Land is permanent.
The power of the soil is original and indestructible.
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