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31. LAND
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CAPITAL
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1.
Meaning
In
economics land includes all natural resources which are available on, above,
and under the surface of the earth.
2.
Nature of Factor
Land
is the natural factor of production, it is permanent in nature.
3.
Elasticity
The
elasticity of land is perfectly inelastic.
4.
Mobility
Land is perfectly immobile
5.
Appreciation/Depreciation
The
value of land normally appreciates.
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In economics, capital refers to that of
wealth which is used for further production of wealth.
Capital is a man made factor of
production. It lacks permanency.
The elasticity of capital is relatively
elastic.
Capital is mobile factor.
The value of capital like machines
depreciates.
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LAND CAPITAL
