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Q.

In contrast to labour, ____ is a scarce factor of production.


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Detailed Solution

In contrast to labour, the land is a scarce factor of production. From the aspects of production, i.e. Land, Labour, Capital and Entrepreneur, all can be generated or produced except land. It is available in fixed quantities. The land is a passive factor of production, i.e. it needs other factors, especially labour, to be used. There is no supply price of land, and it is a gift from nature. It is a fixed factor of production, which means that it is available in a fixed amount; no workforce can alter this.
 
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