An important feature of land is that it?

A. has an elastic supply
B. is an active factor of production
C. is heterogenous in nature
D. is subject to returns to scale

Correct Answer:

Option B – is an active factor of production

Explanation

Land possesses the following characteristics:

• Free Gift of Nature
• Fixed Quantity
• Land is Permanent
• Land is a Primary Factor of Production
• Land is a Passive Factor of Production
• Land is Immovable
• Land has some Original Indestructible Powers
• Land Differs in Fertility