Question

How is land different from labour?

Answer 1

The land is different from labour in the following ways:

• Land is limited in supply: The supply of land is fixed as it is given by nature. But other factors of production can increase the supply to a greater or lesser extent.
• 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.

Answer 2

Land and labour can be differentiated as follows:

1. The land is immobile, while labour is mobile.
2. Land is a passive factor of production, while labour is an active factor of production.
3. Rent is paid on land, while wages are paid to labour.
4. The supply of land is fixed, while the supply of labour is variable.
5. Land is a medium to meet the ends, while labour is both a medium and an end.