Question
Describe the difference between Land and Capital.

Answer

No. Point Land Capital
$1.$ Factor creation It is created by nature. It is man made or produced factor.
$2.$ Supply Its supply is fixed. As it is man made, it can be decreased or increased.
$3.$ Mobility Geographically, it is the most immobile factor. Geographically, it is the most mobile factor.
$4.$ Production cost The production cost of land is zero. Capital involves production cost.
$5.$ return Return of land is rent. Return of capital is interest.

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