Which of the following is NOT a characteristic of land?

Land, as a factor of production, is characterized by several distinct features. One of those characteristics is that land is fixed in supply; there is a finite amount of land available for use in production. This means that, unlike labor or capital, the quantity of land cannot be easily increased to meet demand.

Another characteristic is that land has multiple alternative uses. For example, a plot of land could be used for agriculture, commercial development, or residential housing, showcasing its versatility.

Land is viewed as a non-specific factor of production because it is not tied to a particular type of output. It can be used in various production processes for different goods and services.

However, the statement that land incurs production costs is where the distinction lies. While land can have associated costs, such as rent or opportunity costs, the land itself does not incur production costs in the same way labor or capital does, which require ongoing investment for maintenance, wages, or raw materials. Thus, this choice accurately reflects a characteristic that is not inherently associated with land, highlighting its unique status as a factor of production.