Question

Land is considered a passive factor of production because ______.

Options

• It is a free gift of nature

• It is hetrogeneous

• It is immobile

• It cannot produce any thing on its own

Answer 1

Land is considered a passive factor of production because it cannot produce any thing on its own.

Explanation:

The land is considered a passive factor of production because, unlike active factors like labour or entrepreneurship, land does not actively contribute to the production process. It requires the application of labour, capital, and entrepreneurship to be productive and generate output.