What s are the differences between physical capital and human capital Human capital cannot be used a...........

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What s/are the differences between physical capital and human capital?

Human capital cannot be used as factor of production whereas physical capital can be.
A nation’s physical capital cannot grow over time whereas human capital can.
Physical capital cannot be organized unlike human capital.

Select the correct answer using the codes below.

1 only

2 and 3 only

2 only

None of the above

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Explanation:

Statement 1: Every production is organized by combining land, labour, physical capital and human capital, which are known as factors of production.

Statement 2: Both grow. You may have head of Gross physical capital formation term in economic surveys often. This essentially means development in roads, bridges, capital good etc. that are helpful in increasing production capabilities.

Statement 3: Physical capital is the variety of inputs required at every stage during production, such as machinery. They can be very well organized and maintained for e.g. at different factory locations.