Land

From ZuluNotes - Free Leaving Cert Notes

Land is one of the four Factors of Production in Economics.

Contents 1 House land differs to other Factors of Production 2 Increase in price of land 3 Importance of opportunity cost 4 Location of firms and industries

House land differs to other Factors of Production

1. Fixed supply
2. No initial cost to society

Rent is price determined, not price determining.

Increase in price of land

1. Increase in population
2. Land for industry
3. Transport
4. Agriculture
5. Leisure
6. Tourism

Importance of opportunity cost

1. Wages
2. Social costs and benefits
3. Economic realism
4. Consumer behaviour

Location of firms and industries

Location factors to be considered:

1. Land
2. Labour
3. Capital and Infrastructure
4. Back up services
5. Government regulations
6. Markets