Question

Differentiate between physical capital and human capital.

Answer 1

Differences between physical and human capital are:

$\begin{array}{ccc}\text{Basis}& \text{Physical Capital}& \text{Human Capital}\\ \text{Nature}& \text{It is tangible and can}& \text{It is intangible; built in the body}\\ & \text{be easily sold in the}& \text{and mind of its owner. It is not}\\ & \text{market like any other}& \text{sold in the market, only its}\\ & \text{commodity.}& \text{services are sold.}\\ \text{Ownership}& \text{It is separable from the owner.}& \text{It is inseparable from its owner.}\\ \text{Mobility}& \text{It is completely}& \text{It is not perfectly mobile between}\\ & \text{mobile between}& \text{countries as movement is}\\ & \text{countries except}& \text{restricted by nationality and}\\ & \text{some artificial trade}& \text{culture.}\\ & \text{restrictions.}& \\ \text{Benefit}& \text{It creates only private}& \text{It creates private and social}\\ & \text{benefit.}& \text{benefits.}\\ \text{Depreciation}& \text{It is subject to}& \text{It is also subject to depreciation,}\\ & \text{depreciation, which is}& \text{but it could be avoided by}\\ & \text{unavoidable.}& \text{expenditure on education and}\\ & & \text{health.}\end{array}$