Explain any three differences between physical capital and human capital - Social Science - People as Resource

Question

Explain any three differences between physical capital and human
capital

Aditi Jain · Accepted Answer

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

Regards

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.

Explain any three differences between physical capital and human capital.