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  Land

Land:

Land as a factor of generation refers to all such natural resources or gifts of nature that are offered free to man. It comprises within itself numerous things like land surface, water, air, minerals, rivers, forests, seas, mountains, climate and weather. Therefore, ‘Land’ comprises all things which are not made by man.

Characteristics or Peculiarities of land:

(i) Land is a free reward of nature.
(ii) Land is fixed (i.e., inelastic) in supply.
(iii) Land is enduring.
(iv) Land is stationary
(v) Land varies in fertility and condition.
(vi) Land is a passive factor of generation.

As a gift of nature, the preliminary supply price of land is zero. Though, whenever employed in production, it becomes scarce. Hence, it fetches a price, consequently.

 

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