Q.

Physical capital includes


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a

Farmer’s plough

b

Threshers

c

Buildings

d

All of the above 

answer is D.

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Detailed Solution

Physical capital includes farmer’s plough, threshers and buildings.
Physical capital includes both fixed capital and working capital. Raw materials and money in hand form the components of working capital. Farmer’s plough and threshers are a part of working capital and hence it becomes a part of the physical capital. Buildings form part of the fixed capital and hence is a physical capital as well.
 
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Physical capital includes