Question

Explain any three differences between physical capital and human capital.

Answer 1

Dear Student

Basis of Difference	Human Capital	Physical Capital
1. Consists of	It consists of the skill and knowledge of the human beings.	It includes all the physical tools and machinery used for production.
2. Nature	It is intangible in nature.	It is tangible in nature.
3. Tradable	The services of human capital can be sold in the market, not the human capital.	Physical capital can be sold in the market.
4. Mutual Relationship	Human capital is not created by physical capital.	Physical capital is created by human capital.
5. Wear and Tear	Human capital does not depreciate except the age which is renewed again with education and health.	Physical capital is depreciated over time due to constant use.

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