What are the peculiarities of land as a factor production ?

What are the peculiarities of land as a factor production ?

Ans. The peculiarities of land as an economic resource are given as follows

(i) Gift of Nature– Although land. i~ a free gift of nature with limited and fixed supply, yet it is not available free 0f cost. Market price of land comes into existence due to economic arrangements like private ownership and inheritance.

(ii) Heterogeneity – Land is not uniform in nature. Some lands are fertile, while other are marshy, rocky and barren, unfit to give any crop. Further, market prices of land depend upon its location land situated in the heart of c1ty or near the market, ra1lway stating, aerodromes etc.; will have more value due to better” location than sites in the suburbs

(iii) Fixed Supply- The supply of land is fixed, predetermined by nature. This cannot be increased by the efforts of man. An individual may obtain more of land by paying for it, the society as a whole cannot raise its availability. However, man can discover unknown natural resources such as mineral deposits. New uses of known resources can also be developed but the addition of land is not possible.

(iv) Indestructible – The land surface of earth is not destructible. However, it can be barren or go waste.

(v) Immobile- Different from other factors of production, land is immobile. It cannot be shifted to other places, resulting in wide variations in land rents at various different places. Though land has the lacking of geographical mobility, it can be kept to different uses. On the same piece of land or farm, different uses are possible. Different alternative crops can be grown on the same piece of farm.

Share this post