Economy, asked by sumit64, 1 year ago

what is capital formation? how it is different from physical capital formation?

Answers

Answered by ilikeme
3
when the existing human capital is further developed by becoming more educated and healthy it is known as human capital formation 
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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