FACTORS OF PRODUCTION.
Hey Guyz, Happy Wednesday to you. Congratulations
for being selected to be in the Land of the Living today. Hope this day brings
you Joy unspeakable in all areas of your life. We are continuing from where we
stopped in Econs. 101 with the above topic, so let’s get started.
Factors
of Production refer to Agents, Components or
resources which are combined together to produce goods and services. There are
four factors of production namely:
a. Land
b. Labour
c. Capital
d. Entrepreneur
LAND.
Land is defined in
economics as a free gift of nature, it does not only include the land surface
but all other free gifts of nature and natural resources like forest, mineral
resources, rivers etc. The supply of land is unlimited unlike other factors of
production. The reward for land is RENT.
Characteristics
of Land {Its Features}:
1. Land
is immobile, it can’t move from one place to another.
2. The
Supply of land is fixed, it is impossible for man to increase the quantity of
land.
3. Land
is a free gift of Nature.
4. Land
is subject to diminishing returns, this happens when a land is frequently
bought under cultivation, and it reduces its productivity.
