In economics the word ‘land’ is defined not only the surface of the earth but also other free gifts of nature, e.g., mineral resources, forest resources, anything that helps us to carry out the production of good and services but is provided by nature free of cost.

Factors which determine the productivity of land are : 

1. Fertility of Land : The productivity of land is determined by its natural qualities and its fertility. A flat and levelled land is comparatively more productive than an undulating one. The rich soil is more fertile and productive. However, the agricultural productivity can be improved by proper and extensive use of manure and fertilizers along with adoption of mechanized methods.

2. Proper Use of Land : The productivity of ‘land’ is directly related to its proper utilization. 

For example, a piece of land situated in the heart of city is more suitable for construction of a house or a market place. If this piece of land is put for farming or agricultural use, its productivity will almost be negligible. 

3. Location of Land : The location of ‘land’ affects its productivity to a great extent.

For example, the location of land near the market or bus station will result in economy of transportation charges and overall productivity from this point of view will naturally be higher. Similarly, for better agricultural productivity, its location near water resources is desirable.