हिंदी

Distinguish Between the Following.Land and Capital. - Economics

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प्रश्न

Distinguish between the following.

Land and capital.

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उत्तर

Land and Capital.

LAND CAPITAL

Meaning

In economics land includes all natural resources which are available on, above, and under the surface of the earth.

In economics, capital refers to that of wealth which is used for further production of wealth.

Nature of Factor

Land is the natural factor of production, it is permanent in nature.

Capital is a man made factor of production. It lacks permanency.

 Elasticity

The elasticity of land is perfectly inelastic.

The elasticity of capital is relatively elastic.

Mobility

Land is perfectly immobile

Capital is mobile factor.

Appreciation/Depreciation

The value of land normally appreciates.

The value of capital like machines depreciates.
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2015-2016 (July)

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