Define physical capital, fixed capital, working …

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Define physical capital, fixed capital, working capital with example?

Posted by Khushpreet Singh 5 years, 2 months ago

CBSE > Class 09 > Social Science

1 answers

Yogita Ingle 5 years, 2 months ago

Physical capital: Physical capital is the variety of inputs required at every stage during production. It includes fixed capital and working capital.
Fixed capital: Tools and machines range from a plough to a tractor and sophisticated machines like generators, turbines, computers, etc. The tools, machines, buildings which can be used in production over many years are called fixed capital.
Working capital: Production requires a variety of raw materials. It requires money to make payments and buy other necessary items. Raw materials and money in hand are called working capital. Unlike tools and machines, these are used up in production. For example, Yarn required by a weaver; clay used by a potter.

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