In economic terms, which item would be classified as land?

In economic terms, which item would be classified as land?

• A. A factory building
• B. A software license
• C. Water in a river
• D. A company vehicle

Answer: (C)

In economics, land refers to natural resources that exist without human creation and are used in production. Water in a river fits this category because it is a natural resource not produced by people and can be used for various production processes. A factory building is produced capital, created by human effort. A software license is an intangible asset, not a natural resource. A company vehicle is a man-made physical capital item used in production, but it isn’t land.

In economics, land refers to natural resources that exist without human creation and are used in production. Water in a river fits this category because it is a natural resource not produced by people and can be used for various production processes. A factory building is produced capital, created by human effort. A software license is an intangible asset, not a natural resource. A company vehicle is a man-made physical capital item used in production, but it isn’t land.