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Human capital differs from physical capital in that
a. human capital is tangible.
b. human capital is intangible.
c. human capital has no cost to acquire.
d. physical capital is intangible.

Ask by Reid Munoz. in the United States
Mar 21,2025

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Human capital is intangible.

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Human capital refers to the skills, knowledge, and experience possessed by individuals, which makes it intangible and harder to quantify compared to physical capital like buildings, machinery, and tools. Accumulating human capital often involves investments such as education, training, and experience, which can be costly but crucial for enhancing productivity and innovation in the workforce.
In the real world, the distinction between human and physical capital plays a vital role in business strategy. Companies often invest heavily in training and development programs to increase the human capital of their employees, recognizing that a skilled workforce can lead to greater competitiveness, adaptability, and overall success in an ever-evolving market.

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