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Differentiate between Physical and Human Capital.

Asked by Virender 31st May 2016, 10:20 PM
Answered by Expert

Differences between physical and human capital are as follows:

Physical Capital

Human capital

It is tangible and can be sold in the market.

It is intangible, built in the body and mind of its owner.

It is separable from its owner.

It cannot be sold but only its services can be sold in the market.

It is completely mobile between countries, barring some artificial trade restrictions.

It is not perfectly mobile and is restricted by nationality.

It can be built through imports and creates only private benefits.

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.

Answered by Expert 1st June 2016, 9:48 AM
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