Question

Explain any 3 differences between physical capital and human capital

Answer 1

Physical Capital :-

It is tangible and can be sold in the market.

It is separable from its owner.
It is completely mobile between countries, barring some artificial trade restrictions.

It can be built through imports and creates only private benefits.

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.

countries, barring some artificial trade restrictions.

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.