LAND

Economics. It does not mean soil as in the ordinary speech, but it is used in a much wider sense. In the words of Marshall, land means “the materials and the forces which nature gives freely for man’s aid, in land and water, in air and light and heat.Land stands for all natural resources which yield an income or which have.exchange value. It represents those natural resources which are useful and scarce, actually or potentially.

Peculiarities of Land

In contrast to the other factors of production, land presents certain well – marked peculiarities.

(i) Land is nature’s gift to man.

(ii) Land is fixed in quantity. It is said that land has no supply price. That is, price of land prevailing in the market cannot affect its supply; the price may be high or low, its supply remains the same.

(iii) Land is permanent. There are inherent properties of the land which Ricardo called ‘original and indestructible.

(iv) Land lacks mobility in the geographical sense.

(v) Finally, land provides infinite variation of degrees of fertility and situation so that no two pieces of land are exactly alike. This peculiarity explains the concept of margin of cultivation.

These are a few peculiarities of land and they have a bearing on economic rent.