Asked by Andrés Tomas on Apr 28, 2024
Verified
Which of the following demonstrates human capital and physical capital in that order?
A) For a brick layer: her bricks and her tools
B) For a gas station: the pumps and the cash register
C) For a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen
D) For a medical office: the building and the doctors' knowledge of medicine
Human Capital
The capabilities, understanding, and expertise that an individual or group holds, considered in relation to their worth or expense to a company or nation.
Physical Capital
Assets used in the production process that are tangible in nature, such as machinery, buildings, and vehicles.
- Comprehend the importance of human and physical capital in the progress of economic development.
Verified Answer
KD
Kayla DaltonApr 30, 2024
Final Answer :
C
Explanation :
Human capital refers to the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country. Physical capital refers to any non-human asset made by humans and used in production. In choice C, the chefs' knowledge about preparing food represents human capital, and the equipment in the kitchen represents physical capital.
Learning Objectives
- Comprehend the importance of human and physical capital in the progress of economic development.