Physical capital includes:

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Fixed capital

Working capital

Human capital

Fixed and working capital.

answer is D.

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Detailed Solution

Physical capital includes fixed and working capital.
Physical capital can be divided into fixed capital and working capital. Fixed capital refers to machinery, buildings, tools, vehicles, computers, etc. It is an important asset for the smooth functioning of any production activity. They can be used for years for production purposes. Working capital consists of the raw materials used for producing the final product and money on hand. Examples of working capital include the clay a potter uses to make a pot and the yarn used by a weaver to weave clothes. Money is used to buy the materials required for production purposes. These are necessary for day-to-day activities.

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