Characteristics Of Land --- We have To Understand !!!

The main characteristics of land are as follows:

(1) Land is free gifted by nature : Land is gifted by the nature in free for living things. Any person do not contribute to make or construct land as well as no one pay amount to achieve land. Thus, it is called free gifted factor of production. All other factors are man-made and depend on man. Fertility of land can be increased and decreased but location of land cannot change.

(2) Land can not change in size: Land is limited in area and is absolutely fixed. The supply of land cannot be increased or decreased. Only we may use scientific methods of cultivation and attempt to get more from land.

(3) Land is not perishable: A laborer will die on day and his service will disappear with him. A machine can get depreciated and used up completely. But land can never be destroyed. The fertility of land can decrease for the time being but it can always be renewed. Land is not perishable where as other factors of production are perishable.

(4) Land has no mobility: Land cannot be shifted from one place to another place and from one country to another country where labor and capital can be shifted.

(5) Land is variety in quality: Some land are more fertile the others, some are suitable for cattle breeding, some are good as location for factories, some are suitable for mining etc.Therefore, land has more infinite variations in quality.

(6) Land is different in location: Land is differing in the matter of location. In large cites like, London, New York and other cites, the land is extremely scarce and commands a high value.

(7) Land is passive factor: Land is passive factor of production. It doesn't take any active part in the process of production but it is acted upon by man and machine.