Question

write two basic differences between land and capital as factors of production?​

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 productions

Answer 2

Land:- •Land is motionless.

• Supply of land is fixed. 

Capital:- •Capital is moved easily.

• Supply of capital can be increased or decreased.