Question

Difference between human capital formation and physical capital

Answer 1

Dear student,

Differences between physical and human capital are;

Physical Capital	Human Capital
It increases physical goods.	It increases knowledge and efficiency.
Physical capital is tangible.	Human capital is intangible.
Physical capital formation can be built even through imports.	Human capital formation is to be done through conscious policy formulations.
It creates only private benefits.	It create both private as well as social benefits

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