Physical capital :-

• It INCLUDES all the physical tools and machinery used for production.

• It is TANGIBLE in nature.

• Physical capital can be sold in the market.

• Physical capital is CREATED by human capital.

• While, physical capital is DEPRECIATED over time due to constant use.

• Physical Capital creates only private benefits.

• Physical capital is relatively more mobile.

Human capital :-

• It consists of the skill and knowledge of the human beings.

• It is intangible in nature.

• The services of human capital can be sold in the market, not the human capital.

• Human capital is not created by physical capital.

• Human capital does not depreciate except the age which is renewed again with education and health.

• Human capital creates both private as well as SOCIAL benefits.

• Human capital has relatively restricted mobility due to cultural and nationality obstacles.

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More information :-

Human capital refers to the stock of skill and expertise of a nation at a particular point of time. On the other hand, physical capital refers to the stock of all the tangible assets, such as building, machinery tools etc. which are used in the process of production.

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