ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Physical capital is referred to as one of the three main factors in the production process. 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.

Detailed explanation-2: -What is the difference between physical and human capital in construction? 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: -Capital goods are man-made, durable items used by businesses to produce goods and services. They include tools, buildings, vehicles, machinery, and equipment.

Detailed explanation-4: -Physical capital is plant, equipment, vehicles, and the like. Financial capital from an investor’s point of view is the stocks and the bonds he holds; from a company’s point of view it is the shareholders’ equity investment plus whatever funds the company has borrowed.

Detailed explanation-5: -Human capital: The knowledge and skills that workers acquire through education, training and experience. Note that human capital, like physical capital, is a human-made or produced factor of production. Natural resources: Inputs provided by nature’s bounty such as land, rivers and mineral deposits.