Why is land considered a passive factor in production?

Answer 1

Land is considered a passive factor in production because it does not change or actively contribute to the production process on its own. Instead, it provides the Natural Resources and space that are utilized by labor and capital. The productivity of land depends largely on how effectively it is combined with other factors of production, such as labor and technology, rather than generating output independently. Thus, land serves as a foundation for production but requires active management and input from other factors to create goods and services.