ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Physical capital consists of inanimate assets such as cash, job site equipment, property, and inventory. Human capital, meanwhile, describes the skills, knowledge, and capabilities associated with a company’s personnel.

Detailed explanation-3: -The correct option is C. Stock of means of production. In economics, physical capital refers to factors of production (or input into the process of production), such as machinery, buildings, or computers.

Detailed explanation-4: -Physical capital is the variety of inputs required at every stage during production. It includes fixed capital and working capital. The tools, machines, buildings which can be used in production over many years are called fixed capital. Raw materials and money in hand are called working capital.

Detailed explanation-5: -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.