IMPORTANT USES OF LAND AS A FACTOR OF PRODUCTION
what is land? Land is defined in economics as a free gift of nature.
what is land as a factor of production
What is land in economics?
Land in economics does not only include land surface of the earth but all other free gifts of nature or natural resources like forest, mineral resources, rivers, oceans and atmosphere.
WEED AND THEIR BOTANICAL NAMES
1. ENVIRONMENTAL FACTORS AFFECTING AGRICULTURAL PRODUCTION
3. 52. SOIL MICRO-ORGANISMS
4. ORGANIC MANURING
5. FARM YARD MANURE
8. CROP ROTATION
Unlike other factors of production, the supply of land is limited. The reward for land is rent.
Characteristics or features of land
Land is immobile: Land cannot be moved from one geographical location to another
The supply of land is fixed: It is practically impossible for man to increase the quantity of land.
Land is a free gift: Land is given freely by nature.
Land is subject to diminishing returns: When a piece of land is frequently bought under cultivation, it becomes less productive
Variability: The quality and value of land varies from one place to another as some areas of land are more fertile than others
Rent: The reward for land is classified as rent
Land has no cost of production: No cost was involved in bringing land into existence
Land is heterogeneous: No two parcels of land are the same in value or in other characteristics
Importance and uses of land
Wild life purposes: Land is used for wildlife conservation, e.g. game reserves and national parks
As collateral security: Land with Certificate of Occupancy (C of O) is used widely as collateral to secure loans from banks, especially in urban centres
Construction purposes: Land is used for construction purposes, e.g. roads, airports and railway. Sand, stone, gravel and granite are raw materials used for building and road construction
Social or recreational purpose: Land can also be used for social or recreational purposes, e.g. stadia, schools, markets and cemeteries
general uses of land
- Residential buildings: Residential buildings and housing estates are sited on land
- For industrial buildings: Industrial buildings are also cited on land
- Sources of minerals: Land is the source of minerals like limestone, gold, tin and petroleum, which can serve for transportation of people and goods from one place to another