Land in economics is taken to mean not simply that part of the earth's surface not covered by water, but also all the 'free gifts of nature· such as minerals, soil fertility, etc. Land provides both space and specific resources. Much semantic argument has taken place on the extent to which land as a factor of production is 'really distinct' from capital. Many of the services of land in fact require expenditure of resources to obtain or maintain them, and hence they are aften 'produced means of production'. However, although at the edges the distinction may aften become blurred, it has been retained as a useful analytical convenience. Land is also meant to include the resources of the sea, so that once again we have a difference between the economic and everyday usage of a word.
|Reference: The Penguin Business Dictionary, 3rd edt.|