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Q.

Tools, machines and buildings that can be used for production over many years, are called:


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a

Physical Capital

b

Secondary Capital

c

Fixed Capital

d

Borrowed Capital 

answer is C.

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Detailed Solution

Tools, machines and buildings that can be used for production over many years, are called Fixed Capital. It is a type of Physical Capital. The other type of Physical Capital is Working Capital. Fixed Capital are assets of a business that are permanent and are not intended to be disposed of by a business. These assets include land, building, plant, machinery, furniture, fixed equipment, vehicles, livestock, etc.
 
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