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Q.

Physical capital is of two types: 


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a

Fixed capital & Working capital

b

Farming capital & human capital

c

Fixed capital & human capital

d

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 that do not get consumed in the production process and, thus, can be used for many years in production. Examples of fixed capital include machinery, buildings, furniture, etc. Working capital refers to inputs used up in the production process. Examples of working capital are raw materials, money in hand, etc.
 
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