ECONOMICS
SCARCITY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
the finances necessary for firms to produce their products
|
|
|
buildings and machines used in the production process
|
|
|
the money households use to purchase firms’ output
|
|
|
stocks and bonds
|
Detailed explanation-1: -Physical capital refers to the human-created tangible assets or inputs that are used to support the production of goods and services. It is one of the main factors of production in classical and neoclassical economics. Examples of physical capital include machinery, buildings, vehicles, equipment, etc.
Detailed explanation-2: -Physical capital consists of tangible, human-made objects that a company buys or invests in and uses to produce goods. Physical capital items, such as manufacturing equipment, also fall into the category of fixed capital, meaning they are reusable, and not consumed during the production process.
Detailed explanation-3: -Physical capital consists of items like machinery, buildings, equipment, etc. Physical capital includes man-made goods that are used in the process of production for converting raw material to finished goods. Any new project requires a significant amount of investment in the physical capital.
Detailed explanation-4: -Capital goods are also sometimes referred to as the means of production because these physical and non-financial inputs create objects that can eventually be bestowed with economic value.
Detailed explanation-5: -Physical capital refers to tangible objects or goods, such as cash and machinery, that assist in developing a product or service. Human capital is an intangible asset that refers to the experience, knowledge, and skills workers bring to an organization.