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Economics 12 Notes for Economics Notes

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Land

In economics, land is not mere surface of the earth. It means all things obtained free of cost from the nature. The substances available above, below and on the surface of the earth free of cost from nature are land. They can be sunlight, air, soil. Rocks, sands forest, wind etc. land is not the production made my use of labor, it is limited and fixed in supply. It differs from place to place and its composition can’t be changed. It is immobile and a passive factor of production. It can not be transferable and can’t be created and destroyed.

Features of land

Free gift of nature
It is free gift of nature. It is not produced by human effort and all the substances on the surface, above or below earth is land.

Differs from place to place
Land is different in its composition from place to place. Some places are full of minerals, waters and fertile soil whereas someplace isn’t. Some are usable for manufacture, tourism and adventure and some aren’t.

Multiple uses
The land has multiple uses. It can be put for production, manufacture, trade, recreation, agriculture and so on.

Passive
Mere land doesn’t yield production. There must be use of labor.

Immobile
Land is immobile. However, to some extent its components are transferable.

Limited supply
Land is limited and fixed in supply. It can neither be created nor destroyed. However, their forms are changeable

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