Define the Term Land from Economic and Legal Perspective

The continuous improvement of the land through the production of artificial irrigation agents, i.e. wells, pipe wells, canals, reservoirs, etc., helps to maintain the regular water supply and has a positive effect on soil productivity. Since land is a fixed factor of production, the laws of return are more effectively applicable to it. The increased use of capital and labour on a given parcel of land leads to an increase in agricultural production at a decreasing rate. Unlike other factors, the earth is not physically mobile. It is an immutable factor of production because it cannot be moved from one place to another. There is a lack of geographical mobility. However, some economists describe land as a moving factor with the argument that it can be used for multiple purposes. Georgists believe that this implies a completely inelastic supply curve (i.e. zero elasticity), suggesting that a land value tax that collects land rent for public purposes would not affect the opportunity cost of land use, but would only reduce the value of property. This view is supported by evidence that while land may enter the market, land stocks in the market have an inverse relationship to price (i.e., negative elasticity), if at all.

The situation of the “country” has a major impact on its productivity. For example, the location of the country near the market or bus station will lead to a saving in transport costs, and the overall productivity will of course be higher from this point of view. Similarly, for better agricultural productivity, its location close to water resources is desirable. All major occupations such as agriculture, livestock, poultry farming, fishing, dairy farming, forestry, etc. are focused on agriculture and are also called primary activities. Land, like other factors of production, differs from others in terms of location, fertility, nature and productivity. Two plots are not exactly the same. Sustainable land use is at the heart of some economic theories.

[13] Although land is a passive factor and does not have the capacity to produce itself, it is an important factor of production. Modern economists view land as a specific factor of production that can be used not only for specific purposes, but for several other purposes. The basic concept of land is that it is a certain piece of land, a parcel of land with clearly delineated boundaries that has an owner. You can examine the concept of land in different ways, depending on its context and the circumstances in which it is analyzed. Capital is the fundamental factor that influences the productivity of the earth. The country`s productivity can be maximized with the help of improved seeds, chemical fertilizers and machinery. In order to meet all these requirements, sufficient capital should be available. An example can highlight the importance of the land. In the recent past, despite sufficient capital, manpower and efficient organization, TATA Motors has not been able to launch its nano-car project in Singur, West Bengal, due to the dispute over land ownership.

The productivity of the “earth” is directly related to its proper use. For example, a plot of land in the heart of the city is better suited for building a house or market. If this land is made available for agriculture or agriculture, its productivity will be almost negligible. The supply of land is determined in terms of quantity. This means that the supply of land cannot be increased or decreased like other factors of production. Although for an individual the supply of land can be flexible, the overall supply of land is set at the macro level. However, intensive land use can only increase the effective supply of land. Basically, the land is available for free from nature.

In the initial phase, man did not pay the price of the land he had acquired. However, in order to improve the usefulness or fertility of the land or to make certain improvements in relation to the land, some expenses must be made, but as such, they are provided free of charge by nature. Man must make efforts to acquire other factors of production. All major modes of transport, i.e. road, rail, waterways and airways, are mainly based on land surface, rivers, oceans and air, all of which are components of the country. The country`s most important economic advantage is its scarcity. Many investors who buy land do so with the intention of developing it, often for commercial or residential real estate developments subject to land use regulations. Investing in raw land can result in significant future cash flows that are easy to predict once secured, but land development can be very expensive and uncertain. Risks associated with land use planning can result from taxation, regulatory restrictions on the use, rental and sale of property, and even natural disasters. Land in the commercial sense can refer to real estate or real estate, fewer buildings and equipment characterized by fixed spatial boundaries. Land ownership could give the holder of the title the right to the natural resources that exist within the boundaries of his lands. Traditional economics says that land is a factor of production, along with capital and labor.

The sale of land results in a capital gain or loss. Under Internal Revenue Service (IRS) tax laws, land is not a depreciable asset and is considered a fixed asset instead of a current asset. Land is a passive factor of production and it is therefore important to combine it with other active factors in the right proportion to achieve optimal productivity.