Question

How does human capital differ from physical capital?

Answer 1

Sr. No.	Human Capital	Physical Capital
1.	Refers to people’s knowledge, skills, education, and experience.	Refers to machines, tools, buildings, and equipment used in production.
2.	It is intangible and cannot be physically touched.	It is tangible and can be seen and touched.
3.	It is developed through education, training, and experience.	It is created by human effort and investment.
4.	Examples include skilled workers, doctors, teachers, and engineers.	Examples include tractors, computers, factories, and machinery.
5.	It improves the productivity and efficiency of people.	It helps people produce goods and services more efficiently.