Physical capital is of two types:

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Fixed capital & Working capital

Farming capital & human capital

Fixed capital & human capital

None of the above

answer is A.

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Detailed Solution

Physical capital is of two types: fixed capital and working capital. Fixed capital includes those assets which do not get consumed in the production process and, thus, can be used for many years in the process of production. Examples of fixed capital include machinery, buildings, furniture, etc. Working capital refers to those inputs that get used up in the production process. Examples of working capital are raw materials, money in hand, etc.

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