Q.Why is land often described as a 'free gift of nature'? State two characteristics of land as a factor of production.

Land is called a free gift of nature because, unlike labour and capital, it is not produced by human effort — it exists in nature and is simply made use of. …

Land is called a free gift of nature because, unlike capital (which is produced by human effort using machinery, savings and labour) or labour (which is human effort itself), land in the economic sense — soil, minerals, water, climate — already exists in nature before any human activity begins; humans merely discover and use it, they do not create it.

Two characteristics of land as a factor of production:

1. Fixed in aggregate supply — the total quantity of land (in the broad sense of natural resources) cannot be increased or decreased by human effort, unlike capital, which can be added to through investment. …

Confusing land's geographical immobility (it cannot be moved) with occupational immobility (whether it can be put to a different use) — land is often geographically immobile yet occupa …