Among land, labour, physical capital and human capital, human capital will be considered the best capital because it is an active factor of production whereas all the other three are passive factors of production.

It is the human capital which produces the goods and services by combining the other three factors of production because these three factors will be useless without human capital. But at the same time, we can’t ignore these three factors as all factors are compliments of each other.

The quality of human capital can also be improved by investing in the value adding measures like education. The value off other resources generally depreciates with time but as through time human capital gains experience, thus its value and efficacy increase.