ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Physical capital is important because it increases the productivity of goods and services, which helps the economy grow. The machines inside the corn chips factory make it possible for more corn chips to be produced than the amount that the workers could possibly produce otherwise.

Detailed explanation-2: -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-3: -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-4: -The factors of production are the inputs used to produce a good or service in order to produce income. Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy.