"Over time, human capital has replaced physical capital as the most scarce resource and the main economic factor". What is the value of human capital in economic development?

Question

Accepted Answer

Physical capital is the produced means of production. Productive capacity of a nation is measured by the stock of physical capital in the country. Human capital is the brain behind physical capital. It refers to the skills and expertise acquired by man to produce physical capital. Thus, the cause behind physical capital is human capital.