Land as a Factor of Production
Land is short for all the natural resources available to create supply. It includes raw property and anything that comes from the ground. It can be a non-renewable resource.
That includes commodities such as oil and gold. It can also be a renewable resource, such as timber. Once man changes it from its original condition, it becomes a capital good. For example, oil is a natural resource, but gasoline is a capital good. Farmland is a natural resource, but a shopping center is a capital good.
The income earned by owners of land and other resources is called rent.
The United States is blessed with an abundance of easily accessible natural resources. These include fertile land and water. Many countries are covered with mountains or desert, making it expensive to use the natural resources. It has miles of coastline, lots of oil, and a moderate climate. That's an advantage over Canada. It has similar natural resources, but they are frozen for most of the year. Global warming is beg...