The difference between human capital and physical capital is that
A)human capital is used by humans whereas physical capital is not
B)only human capital increases labor productivity
C)human capital is not physical; an example of human capital is education
D)physical capital requires investment,whereas human capital does not
E)only physical capital increases labor productivity

Question

Quizplus · Accepted Answer

Human capital refers to the knowledge, skills, abilities, and other qualities that a person possesses and can use to produce goods or services. It is intangible, non-physical, and is acquired through education, training, and experience. Physical capital, on the other hand, refers to the tangible assets such as machinery, buildings, equipment, and tools that are used to produce goods and services. While both types of capital can increase labor productivity, they are different in nature and have distinct characteristics. Therefore, option C is the best choice.

The Difference Between Human Capital and Physical Capital Is That