Land (Natural Resources)

Factor of Production in Economics

1. Land (Natural Resources) S.A. Qureshi

2. Definition In Economics, the word ‘land’ is used not merely in the sense of the soil or surface of the earth as is ordinarily understood. It stands for all nature, living and lifeless. It includes all natural resources that we can get free from air, water and land. It covers the land surface, whether level or mountainous.

3. Definition It includes oceans, lakes and rivers, mineral deposits, rainfall, water-power, fisheries, forests and numerous other things which nature provides and man uses. The term ‘land’ thus embraces all that nature has created on the earth, above the earth, and below the earth’s surface. Dr. Marshall has therefore defined land thus: “By land is meant not merely land in the strict sense of the word, but whole of the materials and forces which nature gives freely for man’s aid in land, water, in air and light and heat.”

4. Characteristics of Land : Land is a free gift of nature: Land is limited in area: Land is permanent: Land lacks mobility: Land is of infinite variety: Land is Different in Productivity and Quality:

5. Efficiency of land Efficiency of land refers to the productive abilities with the given inputs over the same area of land. Actually the term efficiency is the ratio of output to input described in percentage. In case of land it means how much more or less a piece of land can produce output as compare to the other with the same input and same area. Obviously all pieces of land are not same efficient due to different reasons.

6. Differences in Fertility: Differences in Location: Human Factor: Technology: Fragmentation: Determinants of efficiency of land Quality of Capital: Means of Transportation: Intensive Cultivation: Extensive Cultivation:

7. THANK YOU Land (Natural Resources) S.A. Qureshi