ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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charbroil grill at Hardee’s
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cash register at Bell’s
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coffeepot at Starbuck’s
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oven in your kitchen
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Detailed explanation-1: -An oven is considered as a physical capital as it is machinery that is used to make something that creates further value.
Detailed explanation-2: -Explanation : Among the following, human being is not a physical capital, the remaining three alternatives, equipment and machines, buildings and raw materials, are all physical capital, which are used in agricultural production. Human is a labor resource.
Detailed explanation-3: -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-4: -Physical capital consists of man-made goods (or input into the process of production) that assist in the production process. Cash, real estate, equipment, and inventory are examples of physical capital. Capital goods represents one of the key factors of corporation function.