Tag: economics

Land has been defined by Prof. Marshall as, "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 and water, in air, light and heat".

Land is the basic basis of transportation because of its extreme importance. It can provide door to door services; cost of land transportation is reasonable; less chance of the goods to get damaged ,etc

Land is a natural resource. It is a free gift of nature to mankind. Because of the presence of land our subsistence, residence and other necessities of life is facilitated.

Land ownership laws determines that 'who will own the land' ,has an extreme significance on the productivity of the land ,that is, the ability to produce goods and services in an economy in a more efficient and effective manner.

The farmers will not look to improve land productivity or maintain the land in good condition as insecurity of tenancy rights will demotivate them to do so. 

Capital is the fundamental factor that affects the productivity of land as for production capital is needed.For example, for cultivating the land proper HYV seeds,agricultural facilities,etc is needed- to facilitate all these capital is of extreme significance.

Water resources close to farm lands is essential for better productivity due to better irrigation. This s especially important in under developed and developing countries as they lack infrastructure for proper irrigation facilities. 

Calculation of average productivity of land helps us to understand the per unit land productivity, which helps us to know the ability of a production system to produce more effectively and efficiently.

Land is one of the four basic factors of production. 

Land alone is of no use without human resource or efficient and effective labour resource. An efficient production mechanism is established with the proper coordination between land and labour, where in the labour makes use of the land to produce output.