Question

Differentiate between Land and Capital as factors of productions?class 9 economics chapter 1

Answer 1

Answer:

Although land can be said to be a form of capital, the major differences between the two are:

1. Land is a purely natural resource whereas capital comprises anything which has value. Ex. - money, gold, machinery etc.

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

3. Land is a primary factor of production meaning it is absolutely necessary for production whereas capital is a secondary factor of products

Explanation:

Answer 2

Answer:

Land is a purely natural resource whereas capital comprises anything which has value. Ex. - money, gold, machinery etc. ... Land is a primary factor of production meaning it is absolutely necessary for production whereas capital is a secondary factor of production.