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Land

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Question
Answer
Outline the economic characteristics of land?   Fixed in supply, land doesn’t have any cost of production, non-specific FOP, the price does not affect the quantity available, lack of mobility.  
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Outline why land is considered to be a unique FOP?   Its a gift of nature and therefore no cost of production to society and its fixed in supply.  
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Define Land?   Anything provided by nature that helps in the production of goods and services to create wealth.  
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Outline the factors that influence the price paid for land?   Demand of private houses, road building, business demand, public amenities.  
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Outline the factors that needs to be considered before deciding where to locate a factory?   Labour & wage rates, cost of land, nature of the product, availability of infrastructure, government influence.  
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State some contributions made by the classical economist David Ricardo?   Theory of Rent, Law of Comparative Advantage, Accepted the Subsistence Wages Theory/iron Law of Wages.  
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Created by: deborahh
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