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Which capital would you consider the best — land, labour, physical capital or human capital? Why?
Answer
Points to remember
- Land - the part of the earth's surface that is not covered by water .
- Labour - the work done by a group of workers or by a particular worker.
- Physical Capital - Equipment, machinery , and buildings are examples of physical capital.
- Human Capital - When investment is made in education , training and medical care population becomes human capital.
- Human capital is the best capital.
- Because only humans can use other resources .
- Developed and rich countries like Japan , have invested in their human capital and their people have made efficient use of other resources like land and capital .
Answer to be written
- Land refers to the part of the earth's surface that is not covered by water .
- Labour refers to the work done by a group of workers or by a particular worker.
- Physical Capital, equipment, machinery , and buildings are examples of physical capital.
- When investment is made in education , training and medical care population become human capital .
- Thus, Human Capital is the best capital among land, labour, and physical capital because other resources cannot be used themselves only humans can make use of them.
- Also, developed and rich countries like Japan which do not have any natural resources and import them, have invested in human capital , especially in the field of education and health . Their people have made efficient use of other resources like land and capital.
