Labour: Types and Importance are listed and explicated in this article. We hope you find it informative, helpful, and satisfactory.
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Land can largely be defined as a free gift of nature. It is the part of nature on which all terrestrial animals live upon. However, the definition of land is based on the context or subject with which it is defined with.
Land in economics does not only include the land surface of the earth but all other free gifts of nature or natural elements such as the forest, mineral resources, rivers, oceans, and the atmosphere. Unlike other factors of production, the supply of land is limited how to be it, land cannot be exhausted.
Features and Importance of Land
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The following are Features and Importance:
1. Land is immobile
Land cannot be moved from one geographical location to another. No matter how small a piece of land is, it is fixed and cannot be moved easily from one place to another because of its immobility.
2. Land is fixed
The supply of land is fixed, It is very impossible for man to increase the number of lands available no matter how hard he or she tries because the land was not made by man, so it cannot be added to.
3. Land is a free gift
Although we all buy land today, Land is given freely by nature to man. And in the purest sense, no one owns the land, people only possess it and do not own it.
4. Land is subject to diminishing returns
As long as agricultural activities are taking place on a piece of land, the land is practically subject to losing its fertility; this is what we mean by diminishing returns.
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5. Land is variable
As you must have known by now, the quality of land varies from place to place and this variability is based on some factors; both natural and artificial.
The reward for land is often called ‘Rent’.
7. Land has no cost of production
No cost on the part of man was needed in order to bring the land into existence.
8. Land is heterogeneous
No two parcels of land on earth are totally the same in value or in other characteristics.
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Importance of Land
Land has so much importance to man in general. The importance of land cannot be overrated. Everything on earth, every technology and invention takes off from the land, making the land an integral factor for the adequate sustenance of life. Some of the other importance of land are:
1. Land is used for agricultural purposes
Everything that a farmer does is done on land and without land, there will be no agriculture. Land is equally useful in terms of recreational purposes it is used for wildlife conservation, such as game reserves and national parks.
2. Land can be used as collateral to obtain a loan from a commercial bank as long as the one who possesses the land has a valid Certificate of Occupancy, he or she can access loans and deposit the land as collateral.
3. Land is equally helpful in terms of construction
All of the roads, flyovers, stadiums, and structures on earth today are done on a piece of land.
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4. Land is also a good source of minerals
It is from land that we get some of the minerals that we have today such as gold, crude oil, limestone, etc.
5. Land is equally used as a means of transportation
Without land, maybe people would not move from one place to another.