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What are the three terms that come under physical capital

Posted by Ashish Kumar 5 years, 3 months ago

CBSE > Class 09 > Social Science

2 answers

Kajal Sharma 5 years, 3 months ago

Physical capital is one of what economists call the three main factors of production. It consists of tangible, man-made goods that assist in the process of creating a product or service.

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Gaurav Seth 5 years, 3 months ago

Physical capital includes the following:

(i) Fixed Capital—It includes buildings, machines, such as generators, turbines, computers etc. and tools.

(ii) Working Capital—It includes raw material and money in hand. These are used up in production.

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