Question
Clarify the difference between Capital and labour.
✓
Answer
| No. | Point | Capital | Labour |
| $1.$ | Meaning | Capital means man made factor of production. When man-made factor is used in production it is called capital. | Labour is that which is done with the purpose of getting am economic reward, it may be physical or mental partially or completely. |
| $2.$ | Remuneration | Remuneration (return) of capital is called interest. | Remuneration (return) for labour is called wages. |
| $3.$ | Mobility | Geographical mobility is the highest in capital. | Landour has minimum geographical mobility. |
| $4.$ | Variability | As it is man made, its supply is variable. | As it depends on population, there is the least variability. |
| $5.$ | Drivability | Capital is divisible. It can be separated from the capital owner. | It is indivisible. It cannot be separated from labourer. |
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