Theory question 103
Theory of Production(a) Define land as a factor of production.
(b) State three features of land.
(c) Explain four ways in which land contributes to the economic development of your country.
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(a) Land is all natural resources (gifts of nature) used in production: the earth's surface, soil, minerals, forests, water and climate.
(b) Any three: fixed in supply; geographically immobile; a free gift of nature (no cost of production to society); subject to diminishing returns; varies in quality/fertility; its reward is rent.
(c) Any four: provides sites for factories, houses and infrastructure; supplies raw materials (minerals, timber) for industry; agriculture on land provides food and exports; minerals such as oil earn foreign exchange and government revenue; provides employment; attracts tourism (natural attractions); provides water and energy resources.
Land includes all natural resources, not just soil.