Question

Which of the following is true regarding "land" as a factor of production?

• A. Land is a perfectly immobile factor.
• B. Land is a passive factor.
• C. Economic reward for land is rent.
• D. All of the above

Answer 1

The correct option is D All of the above

1) Land is a free gift of nature ,it cannot be moved from one place to another, thus,it does not possess any mobility

2) Land is a passive factor of production as it depends on other factors of production for the production process to begin.

3)Rent is the cost of land as a factor of production.