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29. PHYSICAL (REAL) CAPITAL
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HUMAN CAPITAL
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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.
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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
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PHYSICAL (REAL) CAPITAL HUMAN CAPITAL
