Explain any five differences between physical capital and human capital
Answers
Answer:
Physical capital implies the non-human assets of the company, such as plant and machinery, tools and equipment, office supplies etc. that help in the process of production. Human capital refers to stock of knowledge, talent, skills and abilities brought in by the employee, to the organization.
Physical Capital
- It increases physical goods.
- It is a economic and technical process.
- Physical capital is tangible.
- It can be sold in the market.
- The physical capital is separable from its owner.
- Physical capital formation can be built even through imports.
Human Capital
- It increases knowledge and efficiency.
- It is partly a social process.
- Human capital is intangible.
- It can’t be sold in the market.
- Human capital is not separable from its owner.
- Human capital formation is to be done through conscious policy formulations.
Answer:
Explanation:
Physical Capital:
(i) It increases physical goods.
(ii) It is a economic and technical process.
(iii) Physical capital is tangible.
(iv) It can be sold in the market.
(v) The physical capital is separable from its owner.
(vi) Physical capital formation can be built even through imports.
Human Capital:
(i) It increases knowledge and efficiency.
(ii) It is partly a social process.
(iii) Human capital is intangible.
(iv) It can’t be sold in the market.
(v) Human capital is not separable from its owner.
(vi) Human capital formation is to be done through conscious policy formulations.
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