Land

Land is a factor of production in economics, which is a free gift of nature. Land is a natural resource on the earth’s surface and also includes mineral resources such as gold, petroleum, coal, etc.

It also includes agricultural land, seas, mines, seas, fishes, etc.

Characteristics of Land:

1. It is subject to wear and tear as a result of usage.

2. It is fixed in supply; it cannot be replaced or exhausted because the supply is fixed. It is impossible for man to increase the quantity of land.

3. Land does not attract any cost of production, because its creation involves no human effort or sacrifice.

4. Land is immobile because man cannot move buildings and farmland from place to place.

5. Land varies in quality because a piece of land is more fertile than others.

6. The reward for land is rent.

7. It is subject to the law of diminishing returnsThe law of diminishing returns says that, if you keep increasing one factor in the production of goods (such as your workforce) while keeping all other factors the same, you’ll reach... More.

8. Infinite existence; it exists forever.

Contribution of Land to the Economic Development of a Country:

1. Land aids further production, for example, houses, schools, factories, etc. are built on land.

2. It serves as a source of food for grazing animals, such as goats, cows, etc. Animals feed on grasses from the land.

3. Different types of minerals are found on land which are exploitedTo use someone or something unfairly for your own advantage. More by man for economic uses.

4. Food is obtained from land such as rice, cassava, etc. which serves as a means of survival for man.

5. Raw Materials: Timber is obtained from the thick forest, which is used for furniture, etc.

6. Source of Revenue to Government: The government earns a lot of income from land.