Question

Explain four characteristics of land as a factor of production.

State two characteristics of land that make it different from other factors of production.

State two characteristics of land as a factor of production.

Answer 1

Four characteristics of land:

1. Land is limited in supply: The supply of land is fixed as it is given by nature.
2. Gifts of nature: Land is a gift of nature which does not have any cost of production. The land is readily available for any use. However, other agents of production are available at a cost.
3. Primary factor of production: Land is a basic factor of production because it cannot produce anything by itself.
4. Land has alternative uses: Land can be used for alternative uses such as cultivation, dairy or poultry-farming, rearing of livestock, the building of houses, playgrounds, etc.

Answer 2

1. The supply of land is fixed, and it cannot be increased.
2. Land is a free gift of nature. Man has to spend nothing to obtain it.
3. Land is a basic factor of production as land is required in every kind of production.
4. Land is a passive factor of production as it cannot produce anything by itself.