Question

Which of the following statements do not describe land as a factor of production?

• A. Land as a factor of production is movable.
• B. All natural resources fall under land as a factor of production.
• C. The reward received by land as a factor of production is rent.
• D. Land is the factor that supports the other factors of production.

Answer 1

Answer: (A), (D)

The correct options are
A Land as a factor of production is movable.
D Land is the factor that supports the other factors of production.

Land as a factor of production is immovable unlike other factors like capital and labour which remain active based on the requirements. Organisation is the last factor which supports and ties the other three factors namely land, labour and capital together. The organisation is responsible for coordinating between these and it reaps profits as its reward.