Question

Distinguish between human capital and physical capital.

Hint:

Human capital is the skill-set in people, while physical capital is the tool-set used in production.

Answer 1

Human Capital	Physical Capital
It refers to the stock of skills, knowledge, and abilities possessed by individuals.	It refers to man-made goods used for further production like machinery, tools, and buildings.
Increases productivity by improving human efficiency.	Increases productivity by providing means of production.
Intangible in nature.	Tangible in nature.