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Q.

What are the items that come under physical capital?

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a

Human capital

b

Working capital

c

Fixed capital

d

Both a & b 

answer is C.

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Detailed Solution

  • Physical capital refers to the tools, machines, raw materials and money used in production.
  • Here tools and machines are fixed capital while raw materials and money are working capital. So physical capital refers to both fixed and working capital.
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What are the items that come under physical capital?