PHYSICAL (REAL) CAPITAL HUMAN CAPITAL

29. PHYSICAL (REAL) CAPITAL
HUMAN CAPITAL
1.      Meaning
It is stock of produced goods such as machines, tools, factories, etc.

2.      Nature of wealth
It is the tangible wealth of the economy

3.      Measurement
Physical capital can be measured.

4.      Depreciation
The concept of depreciation can be applied to physical capital.



It is the stock of people equipped with education, skill, health, etc.


It is an intangible wealth of the economy.


It is difficult to measure human capital.


The concept of depreciation is not applied to human capital