Introduction to Factors of Production with Land

In general language, these factors which are used in production process are called factors of production. In terms of economics, factors that co-operate in the production process are called factors of production. Factors of production refer to those goods and services without production is not possible. For example: if raw materials, machines, tools, capital, labor etc. are used for production of goods. i.e. books, paper, bag, pen etc. these or things are called factor of production. factors of production are generally grouped into four types i.e. Land, Labor, Capital and Organization.

Let's Talk about LAND.

In ordinary language, Land means surface of the soil but in economics land means not only the surface of the earth but also all the free gifts of nature such as mineral, forest, fertility of soil, resources of the sea etc. which can be used in the purpose of production. Land provides both space and specific resources. In the other words, land refers to the physical space on which production takes as well as the natural resources found on it, such as oil, iron, coal, lumber etc. Thus, land is numeric name given to the free gift of nature. Land is a major and necessary factor of production which is gifted by the nature. Production is not possible without land but it is not active in character.