ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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constructing a new factory
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throwing away old delivery trucks
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giving workers more time off to rest
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training workers to do their jobs better
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Detailed explanation-1: -Investing in Physical Capital A firm invests in itself by buying capital that it uses to improve what it does. In other words, it invests in physical capital to earn higher profits in the future. For example, a firm might invest in new technology to increase the productivity of its employees.
Detailed explanation-2: -(an oven used to bake bread) is correct. This option is correct because a physical capital stock of the economy are the machinery, equipments, or inventory that the firms uses to produce products. An oven is considered as a physical capital as it is machinery that is used to make something that creates further value.
Detailed explanation-3: -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-4: -Examples include plants, office buildings, manufacturing machinery, and vehicles. Spending to purchase these assets is known as capital expenditures (CapEx). Capital goods also consist of smaller tools and supplies that companies use.