Question

Write any three differences between land and capital​

Answer 1

Answer:

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
• Elasticity The elasticity of land is perfectly inelastic
• Land comprises all naturally occurring resources whose supply is inherently fixed.

Capital:-

• Capital is moved easily. Supply of capital can be increased or decreased. Capital is perishable. Capital is man-made.
• The elasticity of capital is relatively elastic
• Capital is distinct from land in that capital must itself be produced by human labor before it can be a factor of production