Question

Differentiate between land and capital

Answer 1

all the land can be set to be a form of capital the major difference between the two are:

1. land is purely natural resources where as capital comprises anything which has value example: Money , gold, machinery etc...,.

2. where is land is a fixed resource there is no limit to the amount of capital that can be raised.

3. land is a primary factor production meaning it is absolutely necessary for production whereas capitalise secondary of production.