Which of the following is NOT a feature of land?

Analyze the question: We are asked to find the option that is NOT a feature (characteristic) of land as a factor of production.

Concept: In Economics, land includes all natural resources: soil, water, minerals, forests, and so on. Its main features are:

• It is a free gift of nature (it was not produced by man).
• It is fixed in supply overall (the total quantity cannot be increased).
• It is geographically immobile (you cannot move a piece of land from one place to another).
• It is subject to the law of diminishing returns when more of other factors are added to a fixed amount of land.
• Its reward is rent.

Check each option:

• A. Free gift of nature: True, a feature of land.
• B. Fixed in supply: True, a feature of land.
• C. Geographically immobile: True, a feature of land.
• D. Returns on land is wages: False. The reward for land is rent, not wages. Wages are the reward for labour.
• E. Subject to law of diminishing returns: True, a feature of land.

The correct answer is D.

Tip: Memorize the rewards of the factors of production with this pairing:

• Land → Rent
• Labour → Wages
• Capital → Interest
• Entrepreneur → Profit

If an exam option mismatches a factor with its reward, it is likely the "NOT" answer.