Fisher Clark Harrod-Domar Lewis Rostow Demo. Popn Pyramids Price Movts Privatisation Causes of Growth Causes of Infl. Conversely economic decline may occur if the quantity and quality of any of the factors of production falls. Improving the Quantity and Quality of Land Resources Increases in the quantity of land available for agriculture will increase economic growth. However, the extent to which this happens is limited to the extent to which bush land can be converted to agricultural land.
All economic resources are scarce and have an opportunity cost.
As bush land is increasingly used for agricultural purposes it is no longer a habitat for wildlife. The relative scarcity of land in the face of a growing population means that the law of diminishing returns might also become relevant. The law predicts that an increasing amount of labour applied to a fixed quantity of land the marginal productivity of the labour will fall. This was the basis of the argument put forward by the Reverend Thomas Malthus. To prevent this loss in productivity the quality of the land must be improved.