Question

Differentiate between physical capital and human capital.

Answer 1

$\begin{array}{cccc}& \text{Physical Capital}& & \text{Human Capital}\\ \text{(i)}& \text{It increases physical goods}& \text{(i)}& \text{It increases knowledge and efficiency.}\\ \text{(ii)}& \text{It is a economic and technical}& \text{(ii)}& \text{It is partly a social process.}\\ & \text{process.}& & \\ \text{(iii)}& \text{Physical capital is tangible.}& \text{(iii)}& \text{Human capital is intangible.}\\ \text{(iv)}& \text{It can be sold in the market.}& \text{(iv)}& \text{It can't be sold in the market.}\\ \text{(v)}& \text{The physical capital is separable}& \text{(v)}& \text{Human capital is not separable from its owner.}\\ \text{(vi)}& \text{Physical capital formation can}& \text{(vi)}& \text{Human capital formation is to be done}\\ & \text{be built even through imports}& & \text{through conscious policy formulations.}\end{array}$