Land: 10 Main Characteristics of Land | Economics

The term "land" in economics is often used in a broader sense. It means not only the surface of the soil but also all those free natural resources.

Therefore, it means all natural free gifts. These natural gifts include (i) rivers, forests, mountains, oceans, (ii) sunlight on the surface, light, climate, weather, rainfall, and the like; (iii) subsurface minerals such as iron, It is included. According to Marshall said, "Land means the natural supply of land, water, air, light, substances, and strength and heat." So land is a free natural gift.

People must work hard in order to obtain other production factors. But human effort is not necessary to acquire the land. Land is not the result of human labor. Instead, it existed long before human evolution.

There is no change in the total amount of land. It is limited and can not be increased or decreased by human effort. The surface area of ​​the land should not be changed

All artifacts are fresh and may not exist. But the land is immortal. That's why I can not live without it. Can not destroy

In every production process, we must start from the land. For example, industries are useful for supplying raw materials, but in agriculture crops are produced on land.

Because it does not produce anything by itself. For example, wheat does not automatically grow on a piece of land. In order to cultivate wheat, humans must cultivate the land. Labor is an active element, but the land is a passive production factor

It can not be transported from one place to another. For example, you can not ship any part of India's surface to other countries.

There are some power of primitive and non-destructible land that can not be destroyed. Fertility is various, but it can not be completely destroyed.

The fertility of the land depends on the land. More than one can be produced in one land and less in another.

Demand for a particular product creates room for the supply of that product, but the supply of land can not increase or decrease depending on demand.

We can use the land in various ways. On land, you can cultivate, build factories, build roads, improve buildings, and transport them with the ocean and river.

So to some extent, even land is not a real market. Lack of land is the only benchmark economic situation in the real market. That market does not sell us the land itself, it is a means, debt to enter the land. As long as the number of houses is limited, the amount of debt can be unlimited, so we all need to live constantly. Regarding the sale of mortgage loans, we are certainly an exclusive market. Therefore, when talking about the real estate market, you should understand that the house sold is not a home but a mortgage - the house is just a ride. In the middle class, if I borrow a house there is a poor person and I will tell myself that if I own a house it will be rich. But even people who "owner" houses with technology borrow the funds purchased. Painful realization means that in the end all of us borrowed money (debts) from private companies, which produced money in the form of loans.

The fourth economic feature of real estate is lacking. Due to the limited amount of land available, the real estate on land and the amount of improved land are insufficient to meet the needs of all individuals. The fifth economic feature is the concept of a place, an economic place of real estate. As each plot is fixed, each plot is affected by changes in economic and demographic factors in the surrounding area. The sixth economic feature is the amount and quality of the surrounding buildings and the impact on other assets on other premises improvements on the site. For example, as the number of ideal improvements increases or its physical quality improves, the value of the subject attribute increases. Finally, the concept of fixing is the ultimate economic feature