Factor of Production in Economics

1. Land
(Natural Resources)
S.A. Qureshi

2. Definition
• In Economics, the word ‘land’ is
used not merely in the sense of the
soil or surface of the earth as is
ordinarily understood. It stands for
all nature, living and lifeless. It
includes all natural resources that we
can get free from air, water and land.
It covers the land surface, whether
level or mountainous.

3. Definition
• It includes oceans, lakes and rivers, mineral
deposits, rainfall, water-power, fisheries,
forests and numerous other things which
nature provides and man uses. The term ‘land’
thus embraces all that nature has created on
the earth, above the earth, and below the
earth’s surface. Dr. Marshall has therefore
defined land thus: “By land is meant not merely
land in the strict sense of the word, but whole of the
materials and forces which nature gives freely for man’s
aid in land, water, in air and light and heat.”

4. Characteristics of Land:
• Land is a free gift of nature:
• Land is limited in area:
• Land is permanent:
• Land lacks mobility:
• Land is of infinite variety:
• Land is Different in Productivity and Quality:

5. Efficiency of land
• Efficiency of land refers to the productive abilities with the given inputs over
the same area of land. Actually the term efficiency is the ratio of output to
input described in percentage. In case of land it means how much more or
less a piece of land can produce output as compare to the other with the
same input and same area. Obviously all pieces of land are not same efficient
due to different reasons.

6. 1. Differences in Fertility:
2. Differences in Location:
3. Human Factor:
4. Technology:
5. Fragmentation:
Determinants of efficiency of land
6. Quality of Capital:
7. Means of Transportation:
8. Intensive Cultivation:
9. Extensive Cultivation:

7. THANK YOU
Land (Natural Resources)
S.A. Qureshi