ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Physical capital is completely mobile between countries except for some artificial trade restrictions. Human capital is not perfectly mobile between countries as movement is restricted by nationality and culture.

Detailed explanation-2: -Physical capital can be separated from its owner easily. On the other extreme, human capital is inseparable from its possessor. Physical capital is usually mobile, but some restrictions occurs out of trade barriers imposed by different countries.

Detailed explanation-3: -What is the difference between physical and human capital in construction? Physical capital consists of inanimate assets such as cash, job site equipment, property, and inventory. Human capital, meanwhile, describes the skills, knowledge, and capabilities associated with a company’s personnel.

Detailed explanation-4: -Physical capital does not require presence of owner, its tangible and is completely mobile. Physical capital refers to factors of production. Human capital has both social and private benefits and not physical capital.

Detailed explanation-5: -Land is not amongst the components of Human Capital.