Which capital would you consider the best-land, labour, physical capital and human capital? Why?
Land, labour, physical capital and human capital are very important for the growth and development of the society and the economy.
In the absence of any of these resources, we cannot hope to have much progress, so they are very important. Every production is organised by combining land, labour, physical capital and human capital. All these are known as factors of production.
However, human capital is the most important capital because all other types of capital can be utilised only by humans. If humans do not develop and process other factors of production (fixed and working) they would remain underdeveloped and unutilised. Resources like land, minerals, fuel have their use only when humans put them into the process of production. Therefore, if we develop human capital, all other factors will automatically develop and will lead to progress.