10 CHARACTERISTICS OF LAND

Land is one of the essential resources of every economy as all natural resources are found on land. 

Land refers to the physical surfaces of the earth as well as those things below, on, and above it.

Land includes natural resources and other of nature. Land serves as the base of all productive activities.

Land has the following characteristics:

1. Relative fixed in supply: The total quantity of land available is fixed.

No human effort can be increased or decreased the total supply of land.

2. Land appreciates: Due to the fixed supply of land, demand for land is growing faster than the supply of land, causing the value of land to rise

3. Land is immobile: Mobility means the ability to move.

The land is fixed in location. It is static in position. The location of a land today will be the same for the next ten years.

Unlike labour and capital which can be moved, land cannot move from one place to another.

Therefore, land is perfectly immobile.

4. Labour is heterogeneous: No two land are the same.

The terrain, geology, fertility, and other physical qualities of different lands vary.

5. Land is a primary factor of production: Land is the most important factor in production because it is where all productive and profitable activities take place.

Agricultural, commercial and industrial activities are all done on land. 

As a result, land is one of the most basic prerequisites for production.

6. The supply of land is inelastic: As the total quantity of land is fixed, the supply of land is inelastic.

This is because the total quantity of land cannot be decreased or increased in response to changes in demand for land.

7. No cost creation: Nothing is spent to create the earth's surface, the minerals beneath it, the soil, and the air space above it.

Because there is no cost associated with the creation of land, it is regarded as a gift of nature.

8. Land has multiple uses: Land can be used for different purposes.

It can be used for agriculture, commercial activity, and industrial, among other things

9. Land market is not centralized: Unlike every other commodity that can be purchased at a specific location, land does not have a centralized market. 

Land transactions deal with the rights and interests that come with the land, not the land itself.

10. Land is subject to the law of diminishing marginal return: The law of diminishing marginal return applies to land.

This is because as the number of variable inputs (workers) employed on the same piece of land increases, the marginal product lowers and the output per worker steadily diminishes.

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