The term 'land' generally refers to the surface of the earth. But in economics it includes all that, which is available free of cost from 'nature' as a gift to human being. Land stands for all nature, living and nonliving which is used by man in production.
Importance of land as a factor of production - In every kind of production, we have to use land. Therefore, land is a basic factor of production.
(i) In industries, it helps to provide raw material.
(ii) It provide space/surface for setting up the sites for industrial infrastructure.
(iii) In agriculture, land is considered as the main factor of production as crops are produced on land.
(iv) All sources of power i.e. hydro-electricity, thermal power, diesel, coal, oil, etc, emanate from land.
Fundamentally speaking, 'land' is the original source of all material wealth and it is of immense rise to mankind. In spite of being a passive factor, it is an important factor of production. An overall economic prosperity of a country is directly related to the richness of its natural resources.
FAQs
Define land. Explain the importance of land as a factor of production.? ›
The definition for Land can be extensive and includes the different forms of what comes from the land. Land is a Factor of Production that includes natural resources and physical space. Some of the resources that Land is responsible for providing include things like oil, coal, timber, or gold.
Why is land important in the factors of production? ›Land as a factor of production includes all fixed natural resources like soil, water, air, forest ,coal and so on that are available on land. The land indirectly includes all these factors required to set up a factory. Therefore, we can build a factory only if these resources are sufficient enough.
What is the land of factor production? ›Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.
What's the best definition of land? ›: ground or soil of a specified situation, nature, or quality. dry land. c. : the surface of the earth and all its natural resources.
Why is land important? ›The land sustains every aspect of our lives, providing fundamental life-support systems and the foundation of our economy and society. It is the place we stand. And also the place we act. It is where we make decisions that affect not just the land, but also water, oceans, air, and atmosphere, and the life they support.
Why is land use so important? ›Land use changes occur constantly and at many scales, and can have specific and cumulative effects on air and water quality, watershed function, generation of waste, extent and quality of wildlife habitat, climate, and human health.
How do you describe land? ›The UN defines land as “a delineable area of the earth's terrestrial surface, encompassing all attributes of the biosphere immediately above or below this surface including those of the near-surface climate, the soil and terrain forms, the surface hydrology (including shallow lakes, rivers, marshes and swamps), the ...
What is the function of land? ›Functions of Land
a store of wealth for individuals, groups, or a community. production of food, fibre, fuel or other biotic materials for human use. provision of biological habitats for plants, animals and micro-organisms.
In economics, land comprises all naturally occurring resources as well as geographic land. Examples include particular geographical locations, mineral deposits, forests, fish stocks, atmospheric quality, geostationary orbits, and portions of the electromagnetic spectrum. Supply of these resources is fixed.
Which option is an example of land as a factor of production? ›Expert-Verified Answer. A tree that is used to make paper is an example of land as a factor of production. Thus option C is the correct answer.
What is the explanation of the land? ›
The term "land" encompasses all physical elements bestowed by nature on a specific area or piece of property—the environment, fields, forests, minerals, climate, animals, and bodies or sources of water.
What's the best definition of land quizlet? ›The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently attached natural objects.
What are the four factors of production and give an example of each? ›| Land | Labor | Capital |
|---|---|---|
| The physical space and the natural resources in it (examples: water, timber, oil) | The people able to transform resources into goods or services available for purchase | A company's physical equipment and the money it uses to buy resources |
Land. Land as a factor of production includes the natural resources used to create a good or service. These can be renewable resources like forests or nonrenewable resources like oil, gold or water, says Edward Petersmarck, executive director of practice development at M&O Marketing.
Is it important to own land? ›Overall, land ownership gives a sense of security and financial stability that allows owners to use land for various purposes. Landowners can grant their land as per the location and the demand for agriculture, residential, commercial, or recreational purposes.
How does land benefit us? ›Land protection is critical to ensuring a healthy community.
Trees provide the air we breathe and help filter clean water for us to drink. Being in the presence of nature reduces blood pressure and improves mental health. Protected lands also are natural carbon sequesters, fighting climate change simply by being.
TRADITIONALLY, land is the first leg of the economic triangle. Even in a modern economy, it is the source of shelter, nourishment, and raw materials for production—and literally the common ground on which all social and economic activity takes place.
What is the most important factors of production and why? ›Among these four, the most important one is the production of the human capital as it can incorporate labor, land, and also physical capital. This can generate output for their businesses or their own.
Why is capital an important factor of production? ›In economics, capital refers to the assets—physical tools, plants, and equipment—that allow for increased work productivity. By increasing productivity through improved capital equipment, more goods can be produced and the standard of living can rise.
What are the factors of production in agriculture? ›Classification of factors of production
It is generally agreed that the inputs to production processes can be classified into four broad groups of factors of production: (i) land; (ii) capital; (iii) labour; and (iv) entrepreneurship.