Distinguish between the following:
1. Land and capital
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Land
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Capital
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Land broadly refers to all the natural resources, flora and fauna, earth, buildings, avenues, air, water, minerals etc.
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Capital includes money invested in the business, machinery and tools.
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It has inelastic supply.
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It has elastic supply.
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The factor payment received on land is rent.
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The factor payment received on capital is interest.
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