Question

Which of the following capital do you think is the best and why? (i) Land capital (ii) Labour capital (iii) Physical capital (iv) Human capital

CBSE Class IX Social Science SA (3 Marks)

Answer 1

Human capital is the best capital of the given capitals due to the following reasons:

(i)    All other resources of capital become useless without human capital.

(ii)  It is through skills and training that human capital makes use of other resources and capitals.

(iii) It is through human capital that the value of certain resources increases to be made into useful products if efficiently utilized.

Answer 2

Explanation:

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.