Question

1-In what ways are human capital and physical capital similar? In what ways are they different?

Answer 1

the difference between human capital and physical capital is that human capital is an intangible asset while the physical capital is a tangible asset which is recorded at the historical cost in a balance sheet. As far as the ownership is concerned, human capital is the one which is inseparable from its owner while physical capital is separable. another major difference between both is that human capital ads on social benefit as well as private benefit while physical capital mostly ads only private benefit. However there are also certain similarities between both forms of capital where both the type of capital can be moved from one place to another hour from one country to another according to the restrictions imposed. Both human capital as well as physical capital get to depreciate with time. both forms of capital are considered in taking major investment decisions on the whole.