Question

3. Which of the following describe Physical Capital?

a. It is a material which satisfies Human wants.
b. It is a Raw material

c. It is wealth other than land like seeds and fertilizers d. It includes machines, buildings, computers.​

Answer 1

Answer:

a. It is a material which satisfies human wants.

Explanation:

Physical capital is the variety of inputs required at every stage during production. It is categorised into two :

Fixed capital - They are the materials which can be used in production over many years. Eg: Tools, machines, computers and buildings etc.

Working capital - They are the materials which get used up in production, also they won't last for years. Eg: Raw materials and money in hand.

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Answer 2

$\huge\bf{Answer :}$

3. Which of the following describes Physical Capital?

A. It is a material that satisfies human wants.

☑ B. It is a Raw material.

C. It is wealth other than lands like seeds and fertilizers.

D. It includes machines, buildings, computers.

$\huge\bf{Additional \:Information :}$

Physical Capital: Physical capital consists of man-made products. It includes equipment such as tools, machines, buildings, raw material, etc.

The physical capital is classified into two sub-components:

• Fixed capital
• Working Capital

Fixed capital - The equipment that can be used over many years is called fixed capital. It includes turbines, computers, plough and generators, machines, tools, and buildings, etc.

Working Capital - The working capital includes raw materials that need money to purchase other equipment.

• Example - Clay and yarn.