Human Capital Formation In India — Economics STD 12 Humanities & Commerce — Question
Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsHuman Capital Formation In India3 Marks
Question
Distinguish between Physical Capital Formation and Human Capital Formation.
✓
Answer
'Physical Capital formation' is mainly an economic and technical process whereas 'human capital formation is partly a social process and partly a conscious decision of the possessor of the human capital.
Physical capital is tangible i.e. can be sold in the market like any other good but human capital is intangible i.e. built in the body and mind of its owner.
Physical capital is sold in the market but human capital is not sold in the market only the services of human capital are sold.
Physical capital is separable from its owner whereas human capital is inseparable from its owner.
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