Question

Difference between fixedcapital and human capital class 9 cbse

Answer 1

Answer:

fixed capital

1) The investment is in long term assets

2)It includes things which can be used for long periods of time

3)For example: tools, buildings and machines

working capital

1) The investment is in current assets

2)It includes things which get used up in production

3)For example:raw material, money

Answer 2

-Fixed capital

.Tools, machines (generator, computer etc.) and buildings are known as fixed capital.

.These tools of production do not get exhausted easily and can be used over a long period of time.

-Human capital

.It is intangible, built in the body and mind of its owner.

.it cannot be sold but only its services can be sold in the market.

.It is not perfectly mobile and is restricted by nationality.

.It depends on a person’s conscience as to whether or not he/she wants to raise the earnings. It creates both private and social benefits.