Define Physical Capital, Fixed Capital, Working Capital and Human Capital with examples
Answers
this means raw materials and money in hand, Production requires a variety of raw materials such as the yarn is used by the weaver and clay used by the potter.
also, some money is always required during production to make payments and by other necessary items.
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Fixed capital:Things or materials which can be used over a long period of time in production of goods are called fixed capital.
Ex-Machines,Tools,etc.
Working capital:Things or materials which can be used only once (as raw materials) in the production of goods are called working capital.
Human capital: Human capital refers to the stock of skill, ability, expertise, education and knowledge in a nation.
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