Question

Explain the term Physical capital.

Answer 1

Physical capital  :   It is one of the requirement neccerary for crop production  It means a variety of of inputs required at every stage during production . Physical capital is divided into two types they are:

1 . 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 .

2 . Working Capital  :  Raw materials and money at hand are called working capital

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