Physical capital:
- Physical capital refers to the tangible assets that are used in the production process, such as machinery, equipment, buildings, and infrastructure.
- It represents the physical resources that a company or an individual possesses to generate income and produce goods or services.
- Physical capital is often referred to as fixed capital because it is durable and can be used repeatedly over an extended period.

Human capital:
- Human capital, on the other hand, refers to the knowledge, skills, abilities, and experience possessed by individuals that contribute to their productivity and earning potential.
- It encompasses the education, training, and health of individuals, as well as their inherent talents and abilities.
- Human capital is intangible and resides within individuals rather than being physical assets.

Differences between physical capital and human capital:

1. Nature:
- Physical capital is tangible and can be seen and touched, whereas human capital is intangible and resides within individuals.
- Physical capital includes assets like machinery and buildings, while human capital includes knowledge, skills, and abilities.

2. Ownership:
- Physical capital is owned by individuals or organizations, and they have control over its use and allocation.
- Human capital is owned by individuals themselves, and they have the ability to enhance or deplete their own human capital through education, training, and experience.

3. Mobility:
- Physical capital can be moved from one place to another, depending on the needs of production or the owner's preferences.
- Human capital is not as mobile as physical capital because it is embedded within individuals. However, individuals can move and take their human capital with them to different locations.

4. Depreciation:
- Physical capital is subject to depreciation over time due to wear and tear or technological advancements, leading to a decrease in its value.
- Human capital, on the other hand, can appreciate or depreciate depending on the individual's efforts to enhance their skills and knowledge or the obsolescence of their existing skills.

5. Investment:
- Investment in physical capital refers to the purchase or acquisition of tangible assets to increase production capacity or efficiency.
- Investment in human capital involves expenditures on education, training, and healthcare to enhance individuals' skills and abilities, leading to higher productivity and earning potential.

6. Transferability:
- Physical capital can be bought, sold, or transferred between individuals or organizations.
- Human capital, although not directly transferable, can be shared or transferred through education, mentoring, or collaboration.

In conclusion, physical capital and human capital are distinct but complementary factors of production. While physical capital represents the tangible assets utilized in production, human capital encompasses the knowledge, skills, and abilities of individuals. Both types of capital play crucial roles in economic growth and development.