Question

Land is a factor of production. Considering the above statement how it is important and what are its functions?

Answer 1

In every kind of production we have to make use of land. Therefore, land is a basic factor of production e.g. all kinds of industries depend on land for supply of raw material and setting up of factories. Agriculture is also done on land. Land facilitates the development of means of transport and communication. Agriculture is also depend upon the quantity and quality of land. Land is a backbone of all economic activities.