Tag: natural resources- air, water and land

More efficient the land gets used in an economy,more the economy gets developed and rich. Hence the land influences the economic growth of a country.

Land maintains the ecological balance. Ecology is the science of the study of ecosystems. Ecological balance is a state of equilibrium where all the species live in harmony.

Water resources close to farm lands is essential for better productivity due to better irrigation. This s especially important in under developed and developing countries as they lack infrastructure to for proper irrigation facilities. 

The skills and the competence of the farmers is proved to directly increase the productivity of the land under cultivation. This is because a skilled and competent labour force is necessary to optimally use the inputs from land to maximise output.

Improved techniques used in the production system ,increases the ability of the land to generate more goods and services in a more efficient and effective way.

Quasi-rent refers to the excess amount earned from the utilization of land for the production mechanism during short period of time.

Land is a free gift of nature and it is fixed in terms of the area hence it is the most scarce resource among the following.

It is a final consumption as over here the residential tenant is the final consumer. Moreover, paying rent to the owner does not involve any  intermediate consumption.

The cost of land as factor of production is known as rent.For instance, when a person utilize a piece of land for any production purpose,certain cost in the form of rent is to be paid.