Question

Which of the following options is not a characteristic of land?

Options

• Supply of land is fixed

• Land is a free gift of nature

• Land is an active factor of production

• Land is immobile

Answer 1

Land is an active factor of production

Explanation:

Land is not an active factor of production; it is considered a passive factor. It cannot produce anything on its own and requires labour and capital to be applied to it for production.

The other characteristics of land are:

• Supply of land is fixed.
• Land is a free gift of nature.
• Land is immobile.

These are all correct characteristics of land, making it incorrect as it states land is active, which it is not.