For example, a software company that relies primarily on the labor of skilled software engineers might see labor as its most valuable factor of production. By contrast, a company that makes its money from building and renting out office space might see land and capital as its most valuable factors.

The production of goods, services, and income depends on the combined effects of four essential economic ingredients called the agents of production. Combining the four agents of production (land, labour, capital, and entrepreneurial coordination) creates a finished real estate product.

What is the most important factor of production? Why? Entrepreneurship is most important because it directs, organizes, and plans the production process.

Land is a strictly fixed factor of production. This means that no amount of change in demand can change the supply of land. To point out, this characteristic is evidence that the supply of land is perfectly inelastic. However, any free gift of nature is abundant, when seen through the lens of a single firm.

Basic ideas – Factors influencing land use

• physical – soil fertility, soil drainage, slope angle, aspect, scenery, mineral potential etc.
• economic – distance from markets, demand for different uses.
• social – population size, legislation, government policies.

Land resource is important because humans not only live but also perform all economic activities on land. Besides, land also supports wild life, natural vegetation, transport and communication activities. Ninety five percent of our basic needs and requirements like food, clothing and shelter are obtained from land.

Land resources are used for the following purposes: Forests. Land not available for cultivation: Barren and waste land; land used for buildings, roads, etc. Other uncultivated land: Permanent pastures and grazing lands.

Land is useful to us in many ways. Especiy the land is used for many human activities. The land is used for human development like plantation of industries,implementing many roads. This land is also used for planting trees that saves the environment and protects us from ecological imbalence.

Conserving environmental resources Protecting land offers numerous environmental benefits. Conserving land and open space can provide habitat for native plants and animals, and enhance ecosystem services. Provide and protect wildlife habitat (particularly if for rare, threatened or endangered species).

One of the most important reasons why clearing land is needed is because it makes the land being cleared safer. Often before land clearing, the land is filled with dead trees, rotting wood, and any type of garbage that may be found on the property.

Tillage of cropland disrupts aggregates and decreases soil organic carbon content, which can lead to decreased infiltration, increased erosion, and reduced biological function. Improved agricultural management systems can increase soil functions including crop productivity and sustainability.

Soils provide anchorage for roots, hold water and nutrients. Soils are home to myriad micro-organisms that fix nitrogen and decompose organic matter, and armies of microscopic animals as well as earthworms and termites. We build on soil as well as with it and in it. Soil plays a vital role in the Earth’s ecosystem.

Use public transport, cycle or walk instead of using a car. Use facilities and trips run by local people whenever possible. Don’t be tempted to touch wildlife and disturb habitats whether on land, at the coast or under water.

Agricultural land use may also result in loss of native habitats or increased wind erosion and dust, exposing humans to particulate matter and various chemicals. Some land uses can accelerate or exacerbate the spread of invasive species.

We have therefore adapted HALF index figures for habitable land area based on the assumption that 71 percent of global total land area is habitable, as shown in the chart.