Wild life purposes: land is used for wild life conservation, e.g game reserves, and national parks. View all posts by Gloria Ogunbor. The economic reward for using the land is rent. As a gift of nature, the initial supply price of land is zero. We can use land in a variety of ways, for various purposes. – myschoollibrary, Capital As A Factor of production: definition, types, characteristics, importance, Capital consumption and causes of low capital formation in west Africa. On the contrary, the definition of land in the economics, of course, is an area, but also includes all the free gifts of nature like water, air, natural resources etc. Land and labour are also known as primary factors of production as their supplies are determined more or less outside the economic system itself. If the land is flat and levelled, it will be more productive than an undulating land similarly land in a hilly area is more productive than a land in the desert. It is a human factor of production. The are two kinds of factors of production. Farming purpose: land is used for the cultivation of both food and cash crops, e.g maize, yam, cocoa, etc. The land is a free gift of nature. Join courses with the best schedule and enjoy fun and interactive classes. Connect with a tutor instantly and get your Characteristics/Features: The main characteristics/Features of land as a factor of production are as follows: (i) Supply of land. There is a lot of input in any production activity. For factors of production for oil, gas, metal, and water and agriculture, lands plays an important role. Land is a passive factor of production. In literary sense, land is regarded as soil. definition, types, determining factors, importance and factors of production. This includes not just land, but anything that comes from the land. Gloria Ogunbor is a trained Teacher in the field of Science Education. She believes teaching and learning should go beyond the classroom hence the need to host her esteemed scholars in her global citadel of learning. The only factor of production that plays an active… A piece of land can be considered more suitable for… To point out, this characteristic is evidence that the supply of land is perfectly inelastic. Characteristics of Land As a Factor of Production. In that case, there are some characteristics that ease out this confusion by clarifying the factor of production-land. The productivity of land depends on its natural qualities. Land has is heterogeneous: This implies that no two parcels of land are the same in value or in other characteristics. With increasing complexity in the world economy, the complexity of the production process is sky-rocketing. For industrial buildings: industrial buildings are also sited on land. One uses the land to produces goods. They are secondary because we get them from land, labor, and capital. Stay connected to myschoollibrary for more educational contents. But in Economics, land includes not only the surface of the earth but also other elements like forests, climate, rainfall, rivers, oceans, mines, deserts, minerals etc. For instance, we can use a piece of infertile land to set up a factory but not for cultivation and agriculture. However, any free gift of nature is abundant, when seen through the lens of a single firm. Land is a passive factor of production . which affect production. Primary factorsinclude land, labor and capital goods we use for production. Each of these factors are broadly explained below. It can be a non-renewable resource. Hence, land has multiple uses. Thanks for stopping by. fertile farm land, the benefits from a temperate climate or the harnessing of wind power and solar power and other forms of renewable energy. There are three basic resources or factors of production: land, labour and capital. Our experts are available 24x7. Labour . Use the link below to share a full-text version of this article with your friends and colleagues. Hope this explanation helps you alot. Labour as a factor of production fully discussed, The Entrepreneur as a factor of production. Transportation purposes: land, air and bodies of water like rivers, oceans, lakes, etc, serve for transportation of people and goods from one place to another. To point out, a factor of production can be a combination of work done by human efforts and natural occurrences. So, it is called a natural factor of production, it is also called a primary factor of production. perfectly inelastic, (2) it is immobile, which means it cannot be moved, and (3) it is passive in nature, because it cannot produce anything on its own. – myschoollibrary. //. It includes all naturally-occurring resources such as soil, water, air, plants, etc. Water provides irrigation for farming activities in dry season. Enter your email address to follow this blog and receive notifications of new posts by email. He stated that it is the labor that decides the volume of production in a country. Whatever is used as an input in the production process to achieve a given level of output is termed factor of production. 5. A baker will need flour, sugar, baking powder, ovum, etc for baking. Fundamentals of Business Mathematics & Statistics, Fundamentals of Economics and Management – CMA. They are the resources businesses use to create wealth. It requires the help of other factors, especially labour to be put to use. Characteristics of Land as a Factor of Production. The supply of land from the point of view of the economy is perfectly inelastic. Land has no cost of production: No cost was involved in bringing land to existence. Land as a factor of production is sometimes also referred to as natural resources. Revise With the concepts to understand better. • It includes more than the mere surface of the earth. Learn more. Land is important in mining and quarrying activities; Land is important in production activity because it provides the sites and materials for production purposes. It can be used either for housing or commercial purpose. Labour as a factor of production: definition, characteristics, and importance. Rent: The reward for land is classified as rent. The reward for land is rent. The Supply of land is fixed: It is practically impossible for man to increase the quantity of land. Land is a passive factor whereas labour is an active factor of production. To put it differently, land can be used for production without paying any money to the ultimate owner i.e. Introduction. – myschoollibrary, The Entrepreneur as a factor of production: definition, characteristics and importance. •Land is the original and primary factor of production. • The production factor of land are the factors which gives value to what the land would be used for. definition, types, determining factors, importance. Land represents all natural resources, such as timber and gold, used in the production of a good. Further, it requires no human effort. However, when used in production, it becomes scarce. But whatever might be the evolution in economics and production, the factors of production stand unscathed. One cannot shift the natural resources from their places of origin. It is immobile. 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