ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Hiring more workers to do a job
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Building extra space in a factory to simplify production
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Switching from oil to coal to make production cheaper
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Lowering workers’ wages to increase profits
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Detailed explanation-1: -Answer: Building extra space in a factory to simplify production is an example of using physical capital to save time and money.
Detailed explanation-2: -Physical capital consists of man-made goods that assist in the production process. Cash, real estate, equipment, and inventory are examples of physical capital.
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: -Equipment, machinery, computers, buildings, and other assets created by humans to produce goods or services from raw materials belong to the physical capital.
Detailed explanation-5: -physical capital. Which of the following scenarios is an example of an investment in physical capital? A firm purchases new equipment for a manufacturing process.