Question

Explain the differences between physical and human capital.

Answer 1

Differences Between Physical Capital and Human Capital. ...Physical capital is tangible in nature, i.e. it can be seen and touched. Unlike human capital is intangible, that can only be experienced. The creation of physical capital is an economic and technical process.

Answer 2

Difference between Physical and Human Capital:

Physical Capital:

• They are the resources used for the productions of goods (Example: wool, cotton, clay, etc)
• They can be traded in the market for money.
• It is something that cannot be separated from the owner/seller.
• Proof can be shown in financial statement.

Human Capital:

• They are the knowledge and skills from a person brought to produce the product.
• They cannot be traded as they stay with the person itself. However the skills and knowledge can be spread through educational means.
• It stays with the person himself.
• Proof is not shown in financial statements.

Hope it helps :)