Question

Explain any three differences between physical capital and human capital.

CBSE Class IX Social Science SA (3 Marks)

Answer 1

Differences :

(i) Physical capital has variety of inputs while human capital is labors, using those inputs.

(ii) Tools, machines can be used over the years while human capital can produce output only if they have experience.

(iii) Example : Physical Capital includes tools, machines, generators, etc.

(iv) Human Capital includes farmers, factory workers, engineers, etc.

Answer 2

Physical Capital:

1.Tangible can be sold in the market .

2.Can be separated from the owner.

3.Can built only through imports and creates only private benefits .

Human Capital :

1.Intangible , built in the body and mind of the owner .

2.Inseparable cant be sold anywhere but only services can be sold.

3.It depends on person's choice whether he/she wants to raise the earnings or not. It creates both private and social benefits.

Hope it helps you......