Question

Short answer type questions (3 Marks)

1. Explain the term physical capital. Mention the different types with

example.

2. Which capital can be considered as the best land, labour, physical capital or

human capital and why?

Long Answer type of question (5 Marks)

1. What is the aim of production? State four requirements of production​

Answer 1

Answer:SHORT ANSWERS:-

Physical capital is the variety of inputs required at every stage during production. It includes fixed capital and working capital. The tools, machines, buildings which can be used in production over many years are called fixed capital. Raw materials and money in hand are called working capital.

Human capital is considered the best when compared to land, labour and physical capital. It is only the human resource that utilises other resources like land and investments which cannot become beneficial on their own.

Explanation:LONG ANSWERS:-

The aim of production is to produce goods and services to satisfy the needs of people as per their demand. Four factors for production of goods and services are as follows : Land Land and other natural resources such as water, forests, minerals etc. Labour or Workers The workers provide necessary labour for production.

HOPE IT HELPS YOU.

Answer 2

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