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In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, land comprises all naturally occurring resources
Natural resource

Renewable resources Renewable resources are sometimes living resources,, which can restock themselves if used sustainably and not over- harvested....
 whose supply is inherently fixed such as any and all particular geographical locations, mineral deposits, and even geostationary orbit
Geostationary orbit

A geostationary orbit is a geosynchronous orbit directly above the Earth's equator , with a period equal to the Earth's rotational period and an orbital eccentricity of approximately zero....
 locations and portions of the electromagnetic spectrum
Electromagnetic spectrum

The electromagnetic spectrum is the range of all possible electromagnetic radiation frequencies. The "electromagnetic spectrum" of an object is the characteristic distribution of electromagnetic radiation from that particular object....
. It is natural resources that are used to make goods and services. Location values must not be confused with values imparted by fixed capital improvements. In classical economics
Classical economics

Classical economics is widely regarded as the first modern school of history of economic thought. It is the idea that free markets can regulate themselves....
, land is considered one of the four factors of production
Factors of production

In economics, factors of production are the resources employed to produce Good and services. Here the rate of output is modeled as a production function of the rate of use of each input employed.They are generally land, labor, and capital; the three groups of resources that are used to make all goods and services....
 (along with capital
Capital (economics)

In economics, capital or capital goods or real capital refers to factors of production used to create goods or services that are not themselves significantly consumed in the production process....
, entrepreneurship and labor).






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In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, land comprises all naturally occurring resources
Natural resource

Renewable resources Renewable resources are sometimes living resources,, which can restock themselves if used sustainably and not over- harvested....
 whose supply is inherently fixed such as any and all particular geographical locations, mineral deposits, and even geostationary orbit
Geostationary orbit

A geostationary orbit is a geosynchronous orbit directly above the Earth's equator , with a period equal to the Earth's rotational period and an orbital eccentricity of approximately zero....
 locations and portions of the electromagnetic spectrum
Electromagnetic spectrum

The electromagnetic spectrum is the range of all possible electromagnetic radiation frequencies. The "electromagnetic spectrum" of an object is the characteristic distribution of electromagnetic radiation from that particular object....
. It is natural resources that are used to make goods and services. Location values must not be confused with values imparted by fixed capital improvements. In classical economics
Classical economics

Classical economics is widely regarded as the first modern school of history of economic thought. It is the idea that free markets can regulate themselves....
, land is considered one of the four factors of production
Factors of production

In economics, factors of production are the resources employed to produce Good and services. Here the rate of output is modeled as a production function of the rate of use of each input employed.They are generally land, labor, and capital; the three groups of resources that are used to make all goods and services....
 (along with capital
Capital (economics)

In economics, capital or capital goods or real capital refers to factors of production used to create goods or services that are not themselves significantly consumed in the production process....
, entrepreneurship and labor). Income derived from ownership or control of natural resources
Natural Resources

Natural Resources is a soul album released by Motown girl group Martha Reeves and the Vandellas in 1970 on the Gordy label. The album is significant for the Vietnam War ballad "I Should Be Proud" and the slow jam, "Love Guess Who"....
 is referred to as rent
Economic rent

Economic rent is the difference between what a factor of production is paid and how much it would need to be paid to remain in its current use....
.

Land was sometimes defined in classical and neoclassical economics
Neoclassical economics

Neoclassical economics is a term variously used for approaches to economics focusing on the determination of prices, outputs, and income distribution s in markets through supply and demand, often as mediated through a hypothesized maximization of income-constrained utility by individuals and of cost-constrained profits of firms employing avai...
 as the "original and indestructible powers of the soil." Georgists
Georgism

Georgism, named after Henry George is a philosophy and economics that holds that everyone owns what they create, but that everything found in nature, most importantly land , belongs equally to all humanity....
 hold that this implies a perfectly inelastic
Elasticity (economics)

In economics, elasticity is the ratio of the percent change in one variable to the percent change in another variable. It is a tool for measuring the responsiveness of a function to changes in parameters in a relative way....
 supply curve (i.e., zero elasticity), suggesting that a land value tax
Land value tax

Land value taxation is an ad valorem tax where only the value of land itself is taxed. This ignores buildings, land improvement, and personal property....
 that recovers the rent of land
Economic rent

Economic rent is the difference between what a factor of production is paid and how much it would need to be paid to remain in its current use....
 for public purposes would not affect the opportunity cost
Opportunity cost

Opportunity cost or economic opportunity loss is the value of the next best alternative foregone as the result of making a decision. Opportunity cost analysis is an important part of a company's decision-making processes but is not treated as an actual cost in any financial statement....
 of using land, but would instead only decrease the value of owning it. This view is supported by evidence that although land can come on and off the market, market inventories of land show if anything an inverse relationship to price (i.e., negative elasticity).

Land, particularly geographic locations and mineral desposits, has historically been the cause of much conflict and dispute; land reform
Land reform

Land reforms is an often-Land reform#Arguments for and against land reform alteration in the societal arrangements whereby government administers possession and use of land....
 programmes, which are designed to redistribute possession and/or use of geographic land, are often the cause of much controversy, and conflicts over the economic rent of mineral deposits have contributed to many civil wars, particularly in Africa
Africa

Africa is the world's second-largest and second most-populous continent, after Asia. At about 30.2 million km? including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area....
.

See also

  • Natural resource
    Natural resource

    Renewable resources Renewable resources are sometimes living resources,, which can restock themselves if used sustainably and not over- harvested....


Citations

  • Anthony C. Fisher (1987). "natural resources," The New Palgrave: A Dictionary of Economics
    The New Palgrave: A Dictionary of Economics

    The New Palgrave: A Dictionary of Economics is a 4-volume reference edited by John Eatwell, Baron Eatwell, Murray Milgate, and Peter Newman. It has 4,000 pages of entries, including 1,300 subject entries , and over 655 biographies listed alphabetically....
    , v. 3, pp. 612-14.