Human Capital refers to the skills, training, experience, education, knowledge, technical know-how and competencies contributed by humans to production process.
Human capital is an important factor of production. It is the value that is added into a company by an employee which can be measured by the employee’s skills and competencies of Human capital.
Characteristics of human capital
- Human capital is mobile
- Human capital is skillful
- Human capital has feelings
- It requires innovation
- Human capital is not predictable
- Human capital is perishable
- Human capital is not fixed
Physical Capital refers to asset which themselves have manufactured and are used for production of goods and services. Examples include machinery, equipment, buildings etc.
- Define Human capital
- Define Physical capital
DIFFERENCES BETWEEN HUMAN CAPITAL AND PHYSICAL CAPITAL
|Human Capital||Physical Capital|
|1. It is a human asset||It is a non-human asset|
|2. It includes skills, training, education etc||It includes asset manufactured and used in production process.|
|3. It is controlled by humans||It cannot be controlled by itself|
|4. It can appreciate through training, education, experience etc||It cannot appreciate in value|
|5. The reward is wages and salaries||It reward is interest|
FACTORS AFFECTING EFFICIENCY OF HUMAN CAPITAL
As an intangible asset,human capital the workforce a company employs. The following factors affect the efficiency of human capital;
- Personal attribute
- Increase in innovation
- State three differences between Human capital and Physical capital
- Explain five factors affecting efficiency of Human capital.
It is also known as Human capital flight. It may be defined as the departure or emigration of individuals with technical skills or knowledge from organizations, industries or geographical region to another.
Brain drain is common among developing nations.
HOW TO ARREST BRAIN DRAIN
Brain drain is taking place at a very fast rate in developing countries. Nigeria is no exception. If we want to arrest Brain drain the following should be done;
- Provision of better job opportunities.
- Provision of attractive salaries.
- Promotion on merit.
- Improvement on adequate research facilities.
- Abolition of quota system.
- Improvement of power supply.
- Protection of the lives and property of citizens.
- Improvements on the universities.
- What is Brain Drain?
- How can Brain Drain be arrested in Nigeria?
- What is Economic planning?
- Outline the problems associated with planning.
- Differentiate between Economic growth and Economic development
- Give five Reasons for continued existence of OPEC.
- State five positive and negative contribution of crude oil to the Nigerian Economy
- The value that is added into a company by an employee is known as human capital B. capital C. physical asset D. developmental capital.
- Physical capital is also known as A. human capital B. non-human capital C. labour D. humans.
- One of these is not the charateristic of human capital A. it is mobile B. It is tangible C. It has feelings D. It requires motivation
- The departure or emigration of individual with technical skills or knowledge from one country to another is known as A. mobility of labour B. brain drain C. travelling D. emigration
- All are factors responsible for brain drain except A. poor opportunity B. political instability C. marriage D. social environment.
- Briefly explain the factors affecting human capital
- Differentiate in a tabular form human capital and physical capital.
ECONOMICS SSS 3 SCHEME OF WORK
SCHEME OF WORK FOR ECONOMICS SS 1