Question

what is physical capital.what are its different types.explain each type.

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 .  Two items comes under Physical capital , 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