State with reason whether you agree or disagree with the following statement.
Supply of land is fixed.
Yes, the above statement is correct. Land refers to the earth's surface. According to Dr. Alfred Marshall, land also includes water, air, heat, light, coal, gold etc. All these resources are given to mankind as free gifts of nature. Since the endowment or supply of land is fixed, and cannot be increased by human effort, we can conclude that supply of land is fixed.
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- Factors of Production - Land