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What is you understand by the physical capital

Posted by Nikhil Sharma 6 years, 11 months ago

CBSE > Class 09 > Social Science

2 answers

Gaurav Seth 6 years, 11 months ago

Physical Capital is the variety of inputs required at every stage during production.

Physical Capital is of two types:
(i) Fixed Capital: Tools, machines and building etc. are called Fixed Capitals. Tools and Machines ranged from very simple tools such as farmer's plough to sophisticated machines such as generators, computers, etc. They are called fixed as they can be used for many years.

(ii) Working Capital: production requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter. Also, some money is always required during production to make payments and buy other necessary items. In this way, raw materials and money in hand is called working capital.

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Nikhil Sharma 6 years, 11 months ago

What is you by the physical capital

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CBSE > Class 09 > Social Science