Land is a purely natural resource whereas capital comprises anything which has value. Ex. - money, gold, machinery etc,
land is fixed resources but capital is not,

land is primary factor but capital is secondary.

Land:

Land refers to the natural resources that are available on the surface of the earth. It includes all the physical elements such as soil, water bodies, forests, minerals, and any other resources that are present in their natural form. Here are three key points that distinguish land from capital:

1. Natural Resource:
Land is a natural resource that is not created by human effort. It exists in its original form and is not man-made. It is characterized by its immobility and permanence. Land cannot be moved or transported from one place to another as it is fixed in a particular location. For example, a piece of land with fertile soil can be used for agricultural purposes.

2. Fixed Supply:
Land has a fixed supply, meaning that its quantity cannot be increased or decreased by human action. The total amount of land available is limited and cannot be expanded. This makes land a scarce resource. As the population increases and urbanization takes place, the demand for land also increases, leading to a rise in its value. This is why land is considered to be a factor of production with limited availability.

3. Passive Factor:
Land is a passive factor of production as it does not possess the ability to generate income on its own. It requires the application of human labor and capital to make it productive. For example, a piece of land can be used to build a factory, but the factory itself requires labor and capital in the form of machinery and equipment to produce goods and generate income. Land itself does not contribute directly to the production process but serves as a platform for other factors of production.

In summary, land is a natural resource with a fixed supply that cannot be created or moved. It is a passive factor of production that requires the application of labor and capital to make it productive. Understanding the distinction between land and capital is important in economics as it helps in analyzing the factors that contribute to the production process and the allocation of resources.