True

Human capital and physical capital are both important factors in the production process and economic growth. While they are distinct concepts, they are closely related and often complement each other.

Difference Between Human Capital and Physical Capital:
- Definition: Human capital refers to the knowledge, skills, abilities, and experience possessed by individuals, which can be used to create economic value. Physical capital, on the other hand, refers to the tangible assets such as machinery, equipment, buildings, etc., that are used in the production process.
- Nature: Human capital is intangible and resides within individuals. It is developed through education, training, and experience. Physical capital, on the other hand, is tangible and can be seen and touched.
- Role in Production: Human capital plays a crucial role in the production process as it is responsible for the creation and implementation of ideas, innovation, problem-solving, decision-making, and overall productivity. Physical capital, on the other hand, provides the tools and infrastructure necessary for the production process to take place.
- Ownership: Human capital is owned by individuals and cannot be easily transferred or sold. Physical capital, on the other hand, is owned by individuals or organizations and can be bought, sold, or rented.
- Value Creation: Human capital has the potential to create value by continuously improving skills and knowledge, adapting to changing circumstances, and finding new ways to solve problems. Physical capital creates value by enabling the production of goods and services efficiently and effectively.

How Physical Capital helps in Formation of Human Capital:
- Access to Resources: Physical capital provides individuals with access to resources such as books, computers, laboratories, training facilities, etc., which are essential for acquiring knowledge and developing skills.
- Infrastructure and Facilities: Physical capital contributes to the development of human capital by providing the necessary infrastructure and facilities for education, training, and research. For example, schools, universities, research centers, libraries, etc., are all physical capital that supports the formation of human capital.
- Technological Advancement: Physical capital, particularly machinery and equipment, enables the use of advanced technologies and techniques in the production process. This, in turn, requires individuals to develop the necessary skills and knowledge to operate and maintain such technologies, thereby enhancing their human capital.
- Productivity Enhancement: Physical capital improves the productivity of individuals by providing them with tools and equipment that make their work easier, more efficient, and more effective. This allows individuals to focus on tasks that require higher-level skills and knowledge, thus contributing to the development of their human capital.

In conclusion, physical capital and human capital are interrelated and mutually beneficial. Physical capital provides the necessary resources, infrastructure, and tools for the formation of human capital, while human capital enhances the productivity and effectiveness of physical capital in the production process.

Answer is false because human capital helps in formation of physical capital