ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Human Capital is related to labor only, Physical Capital is related to tools/machines
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There is no difference between Human Capital and Physical Capital.
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Human Capital is related to natural raw materials; Physical Capital is related to machines/tools
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Human Capital is related to knowledge, skills, and experience; Physical Capital is related to machines/tools
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Detailed explanation-1: -Physical capital implies the non-human assets of the company, such as plant and machinery, tools and equipment, office supplies etc. that help in the process of production. Human capital refers to stock of knowledge, talent, skills and abilities brought in by the employee, to the organization.
Detailed explanation-2: -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-3: -Physical capital is separable from its owner, whereas, human capital is inseparable from its owner. It is completely mobile between countries except for some artificial trade restrictions.
Detailed explanation-4: -Human resource is different from other resources in many senses. Human resources need education, training and healthcare to develop. On the other hand, land and physical capital need money and physical inputs to develop. Land and physical capital are useless without human resources.
Detailed explanation-5: -What Is Human Capital? The term human capital refers to the economic value of a worker’s experience and skills. Human capital includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.