Question

What is the difference between physical capital and human capital?

Answer 1

Physical Capital	Human capital
1. Any non-human asset made by humans and then used in production it is known as physical capital.	1. When the existing 'human resource' is further developed by becoming more educated and healthy we call it human capital formation that adds to the productive power of the country.
2. Physical capital represents production capacity of a nation.	2. Human capital is the cause behind physical capital.
3. Physical capital has relatively less economic value.	3. Human capital has relatively more economic value.
4. Physical capital is tangible.	4. Human capital is intangible.
5. It depends on a person’s conscience as to whether or not he/she wants to raise the earnings. It creates both private and social benefits.	5. It can be built through imports and creates only private benefits.