ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Human capital is an intangible asset not listed on a company’s balance sheet. Human capital is said to include qualities like an employee’s experience and skills. Since all labor is not considered equal, employers can improve human capital by investing in the training, education, and benefits of their employees.

Detailed explanation-2: -Key Takeaways Human capital the intangible economic value of a worker’s experience and skills. This includes factors like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Detailed explanation-3: -It is TRUE, that human capital formation creates physical capital. Physical capital consists of all the means of production that go towards producing goods and services. This capital can be in the form of plants and machinery, or services.

Detailed explanation-4: -Human capital is not perfectly mobile between countries as movement is restricted by nationality and culture. It is intangible, it cannot be sold in the market only the services of human capital are sold and hence the necessity of the owner of the human capital to be present in the place of production.