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Q.

Choose given statement True/False:


Land used to come under physical capital.


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a

True

b

False 

answer is A.

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Detailed Solution

The above statement is true.
Land used to come under physical capital. Physical capital refers to the various inputs that are required at the various stages of production. Tools, machines, and raw materials are part of the physical capital. Tools and machines can be used for an extended period and are also known as fixed capital. Raw materials need to be renewed and can only be used for a short period.
 
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