Question

Mention one
difference between land
and capital?​

Answer 1

Answer:

1. land is natural resource and capital is money

2 land is the first requirement whereas capital is the third

3 land is fixed and capital is important for production

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 production.

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Explanation:

Answer 2

Hello !

 

Land:- Land is motionless. Supply of land is fixed. It is a free gift of nature and limited in supply. Land is permanent and indestructible.

Capital:- Capital is moved easily. Supply of capital can be increased or decreased. Capital is perishable. Capital is man-made.

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