ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Physical capital refers to the significant manufactured goods that aid and support the creation. Human-made goods like sewing machines are considered physical capital.

Detailed explanation-2: -Capital resources include money to start a new business, tools, buildings, machinery, and any other goods people make to produce goods and provide services.

Detailed explanation-3: -All machines are not capital goods like a sewing machine in a tailoring shop is a fixed asset of the tailor; it is a capital good. But the same machine with a consumer household is not a capital good.It is simply a durable use consumer good. likewise, a car with a tourist company is a capital good.

Detailed explanation-4: -Capital Resources refer to all the man-made assets that are used to manufacture goods. These resources include tools, machines, equipment, buildings, etc. Any tool or resource employed by a business in the production process of goods or services is termed as a capital resource.

Detailed explanation-5: -Tools, machinery, buildings, vehicles, computers, and construction equipment are types of capital goods. Capital goods are one of the four leading economic factors.