Question

explain three differences between human and physical capital.

Answer 1

Physical Capital
(1) It increases physical goods.
(2) It is a economic and technical process
(3) physical Capital is tangible

Human Capital
(1) It increases knowledge and efficiency
(2) It is partly a social process
(3) Human capital is intangible

Answer 2

Physical capital - 1. It is a man made source of production
2. It is a passive factor of production
3. The capital has an economic value.

Human capital - 1. It is a factor of production which combines or arranges all the factors of production to produce.
2. It is an active factor of production
3. It produces goods and services for self consumption or to sell in the market.