Explain the meaning of ‘Physical Capital’. Explain its two types withthe help of suitable examples.
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Explanation:
Physical capital:- It is one of the requirement necessary for crop production. It means a variety of inputs required at every stage during production.
Physical capital is of two type:-
Fixed capital- It includes tools and machines ranging from simple tools like - farmer's plough and machines like - generators, turbines, computers. Actually tools, machines and buildings can be used in production over many years, and are called fixed capital.
Working capital- Raw materials and money at hand are called working capital.
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