ICS FA ICom Notes Class XI Principles of Economics Land

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Meaning of Land

Very simply we can say that all what is given by nature for the use of mankind is called land.

Marshal defines land as,

“By land is not merely meant land in the strict sense of word but whole of the materials and forces which nature gives freely for mans aid in land and water in air light or heat.”

In the light of above definition land is not only a piece of land as we generally understand nether it includes mineral wealth surface of ground, fishes, air, sunlight, oceans, streams, fertility of soil, rainfall etc. In short we can say that what ever we find below and above the surface of earth and seas, comes within the category of land it is a free gift of nature. The tern land is one of the broodiest terms that are used in economics.

Characteristics of Land

Some of the important characteristics of land are as follows:

1. It is Fixed in Quantity

One of the most important features of land is that it is fixed in quantity nither it can be decreased nor increased since it is a nature’s gift its quantity is naturally fixed. Humans do not have the power that can help them in changing the quantity of the gift of nature. Due to this the productive activities get restricted or limited to the particular size of land. It can be said that the extant of production largely depend upon the availability of land.

2. Land is an Indispensable Factor

Land is the most essential factor of production. Without land no business or productivity can even be initiated. Since land does not merely means a estate, it also include air, water, light etc. which are indispensable factors to produce something. Therefore it is rightly said, “No land no production”.

3. Land is Passive in Nature

Land is passive factor of production i.e. it cannot produce any thing by itself. It needs something to activate its productive capacity. Efforts have to be made effectively so that full utilization of this factor can be obtained. A number of other sources and elements are properly applied to get efficient production.

4. Land is Immobile

Land cannot move. It is immobile in nature and is a non-portable commodity. It cannot be transferred from its place to a new one even if the conditions are more favorable to increase its capacities. It remained fixed on a particular location and its position cannot be changed.

5. Fertility of Land Differs

An important characteristic of land is that all lands differ from each other In terms of their fertility. They all are not equally alike. As a result one cannot expect to get same quantity or quality or production from different pieces of lands. Equal and identical production may not be achieved on different lands at the same time. Although artificial measures are available but they only help to activate the fertility but are incapable of making the lands equal in production.

6. Land is Indestructible

Since land is a gift of man cannot destroy nature and it. It is a gift from the nature to humans for satisfying and fulfilling his needs and wants. It is not a result of his efforts and sacrifices.

7. Its Value is Different

The value of land to great extant depends on its fertility and location. Higher the fertility higher the value, lower the fertility lower the value. Similarly a land near to market may have higher value as compared to the land located away from the market.