Tag: land,labour, capital and entrepreneur

The skills and the competence of the farmers is proved to directly increase the productivity of the land under cultivation. This is because a skilled and competent labour force is necessary to optimally use the inputs from land to maximise output.

Improved techniques used in the production system ,increases the ability of the land to generate more goods and services in a more efficient and effective way.

Quasi-rent refers to the excess amount earned from the utilization of land for the production mechanism during short period of time.

Land is a free gift of nature and it is fixed in terms of the area hence it is the most scarce resource among the following.

It is a final consumption as over here the residential tenant is the final consumer. Moreover, paying rent to the owner does not involve any  intermediate consumption.

The cost of land as factor of production is known as rent.For instance, when a person utilize a piece of land for any production purpose,certain cost in the form of rent is to be paid.

Complete mobility is not a characteristics of land as land is a free gift of nature ,it does not possess any mobility ,that is, it cannot be moved from one place to another.

Coal mines of Bihar, water resources of Uttaranchal,mineral deposits of Jharkhand- all these resources are regarded as land in economics because these resource help to produce goods and services in the economy thus, an efficient production process can be ensured. Income and employment generation -can also be increased by utilizing these resources.

Land has a flat supply curve since the quantity supplied of land is fixed since land is a natural resource. Therefore, the supply curve of land is inelastic in nature, that is, supply of land remains fixed irrespective of the change in demand level.