Which factor of production has the following characteristics? I.Free gift of nature II.Limited in supply III.Immobile

Answer Details

The factor of production that has the characteristics of being a free gift of nature, limited in supply, and immobile is land. "Free gift of nature" refers to the fact that land is a natural resource that is not created by humans. It includes all the gifts of nature such as water bodies, forests, mineral deposits, and soil. "Limited in supply" means that there is a finite amount of land available, and it cannot be produced or manufactured by humans. Therefore, the supply of land is fixed. "Immobile" means that land cannot be moved from one place to another. It is fixed in location, and its location is an essential factor in determining its value. Taken together, these characteristics make land a unique factor of production. Unlike other factors of production, such as labor or capital, land is not produced or manufactured by human effort. It is a fixed and finite resource that is essential for many economic activities, including agriculture, mining, and construction. Therefore, land is a critical resource for economic development, and its scarcity and immobility make it a valuable and limited resource. Thus, land is the factor of production that has the given characteristics.