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In general terms, ‘land’ refers to soil or earth’s surface. But, in the economic sense, land includes all the free gifts of nature like natural resources, fertility of soil, natural vegetation, etc. Irrespective of whether it is on the surface, above the surface or below the surface
According to Prof. Alfred Marshall, “by land is meant not merely land in the strict sense of the word, but the whole of the materials and forces, which nature gives freely for man’s aid in land, water, air, light and heat”.

Features of land:

  • Land is a free gift of nature: No human effort is required for the production of land. It existed even before the evolution of mankind.
  • ƒLand is limited in area: The total geographical area of land is fixed. The supply of land is fixed in area. It can’t be increased or decreased according to our requirements.
  • ƒLand lacks mobility: The physical movement of land is impossible. Land can’t be shifted or moved from one place to another place. For example: The Diamond Mines of Africa cann’t be shifted to India.
  • ƒLand is indestructible (Can’t be destroyed): Only the fertility or the productivity of land may be destroyed but not the land itself. As we know, this fertility or productivity of land may be replenished through proper treatment.
  • ƒLand varies in quality: Land is not uniform in quality or fertility. No two pieces or plots of land are uniform in fertility. Some lands will be more fertile, some will be less fertile, some will be rocky etc.
  • ƒLand differs in value: The value of land differs from one locality to another. Locational advantages are not enjoyed in all the places. Hence the value differs. The land in the densely populated area commands more value and on the contrary the land in the remote area has less value. The fertile land has more value than the infertile land.
  • ƒLand is the primary and passive factor of production: All kind of economic activities have to take place on Land. Hence it is the primary factor of production. Left to itself, it will not produce anything on its own.
  • ƒLand is subject to law of diminishing marginal returns: The marginal output from land is subject to the Law of Diminishing Marginal Returns. After a certain stage, application of more and more units of labour and capital to a fixed plot of land results in less than proportionate increase in output.

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