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3. Which of the following describe Physical Capital?a. It is a material which satisfies Human wants. b. It is a Raw materialc. It is wealth other than land like seeds and fertilizers d. It includes machines, buildings, computers.​

Answer»

\huge\bf{Answer :}

3. Which of the following describes Physical Capital?

A. It is a material that satisfies human wants.

☑ B. It is a Raw material.

C. It is wealth other than lands like SEEDS and fertilizers.

D. It includes MACHINES, buildings, computers.

\huge\bf{Additional \:Information :}

Physical Capital: Physical capital consists of man-made products. It includes equipment such as tools, machines, buildings, raw material, etc.

The physical capital is classified into two sub-components:

  • Fixed capital
  • Working Capital

Fixed capital - The equipment that can be used over many years is called fixed capital. It includes TURBINES, computers, plough and generators, machines, tools, and buildings, etc.

Working Capital - The working capital includes raw MATERIALS that need money to PURCHASE other equipment.

  • Example - Clay and yarn.


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