Question

Mention two ways by which land differs from other factors of production.

Answer 1

Land differs from other factors of production:

1. It is a free gift of nature and is available free of cost.
2. The supply of land is fixed in quantity. It cannot be increased or decreased like other factors of production.
3. Land is immobile while any other factor of production can move from one place to another place or one useful occupation to another occupation.