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Question
______ are examples of physical capital.
Options
Machines, equipments, factory buildings
Shares, bonds, debenturists
Money, time deposits
Wages given to a factory worker
Solution
Machines, equipments, factory buildings are examples of physical capital.
Explanation:
- Physical capital economists call one of the four main factors of production, consists of tangible human-made goods that assist in the process of creating a product or service.
- Physical capital includes the machinery, buildings, offices or warehouses, vehicles and computers that a company owns.
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