To understand how these factors apply to a business, consider the story of an entrepreneur, Henry, who has an idea to make an evolutionary toothbrush that eliminates tooth decay. His toothbrush dispenses minute amounts of sap from the baobab tree, a rare tree found only in Africa. While the user brushes, the sap coats the teeth to prevent tooth decay.
Economics is a science of everyday life.
It has to use words of everyday language. But it gives them a meaning of its own, sometimes narrow and at other times wide. 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. It includes oceans, lakes and rivers, mineral deposits, rainfall, water-power, fisheries, forests and numerous other things which nature provides and man uses.
Marshall has therefore defined land thus: Land as a factor of production is of immense importance. As has already been pointed out, everything that we use can be traced ultimately to land.
Land may be rightly called the original source of all material wealth.
The economic prosperity of a country is closely linked with the richness of her natural resources. Generally speaking, it is true to say that a country is what nature has made it. It is possible that a country, rich in natural resources, may remain poor e.
But if nature has been unkind and has not given rich resources to a country, it will not be easy to make it prosperous. Obviously, the quality and quantity of agricultural wealth in a country depends on the nature of the soil, climate, and rainfall. Agricultural products, in their turn, form the very basis of trade and industry.
Industrial prosperity further depends on the presence of rich coal-mines or waterfalls from which electricity can be generated. Localisation of industry depends on the proximity of power and raw materials and they are largely determined by nature.
The presence of cheap and efficient means of transport is largely conditioned by the topography of a country. Land or nature has a determining influence in moulding the life, occupations and standard of living of a people.
Lana as a factor of production is quite peculiar. It possesses some important features, which distinguish it from other factors of production. They are given below: Land is a free gift of nature: It follows, therefore, that we have to accept it as it is. No doubt man tries to improve and modify nature.
But he cannot completely master it. A poor soil and a bad climate are great handicaps in the way of industrial and commercial prosperity. Land is limited in area: Efforts have been made to reclaim land from the sea, and thus add to the total land surface.
Yet these efforts have produced only negligible results as compared with the total area already in existence. Some land in Holland has been reclaimed from the sea, but it is after all a small percentage of the total land surface of the world. It is not easy to destroy it.
All other factors are destructible, but land cannot be completely destroyed. Even the havoc wrought by an atom bomb can be cured and natural powers restored after some time.
Land cannot be moved bodily from one place to another. It lacks geographical mobility.Importance of Land: Land a factor of production is of immense importance. Land is the original sources of all material wealth.
Land is the original sources of all material wealth. The economic prosperity of a country is closely linked with the richness of her natural resources.
Factors of production is an economic term that describes the inputs that are used in the production of goods or services in order to make an economic profit. The factors of production include land.
There are three basic resources or factors of production: land, labor, and capital. The factors are also frequently labeled "producer goods or services" to distinguish them from the goods or services purchased by consumers, which are frequently labeled "consumer goods".
"T he land means the material and the forces which nature gives freely to man's aid in land and water, in air and light and heat".
Characteristics/Features: The main characteristics/Features of land as a factor of production are as follows. Land has a broad definition as a factor of production and can take on various forms, from agricultural land to commercial real estate to the resources available from a particular piece of land.
Land is a primary factor of production Though all factors are required for production, land puts foundation for production process. Starting point of production process is an acquisition of land.