Distinguish between Physical Capital Formation and Human Capital Formation.
**Answer:** - i. 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. - ii. 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. - iii. Physical capital is sold in the market but human capital is not sold in the market — only the services of human capital are sold.

Question

Distinguish between Physical Capital Formation and Human Capital Formation.

**Answer:** - i. 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. - ii. 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. - iii. Physical capital is sold in the market but human capital is not sold in the market — only the services of human capital are sold.

Accepted Answer

- iv. Physical capital is separable from its owner whereas human capital is inseparable from its owner.