Question

Tools and machines used in production for many years is called _____.

• A. physical capital
• B. moving capital
• C. working capital
• D. fixed capital

Answer 1

Answer: (D)

fixed capital

Fixed capital is nothing but the capital which includes the assets and capital investments that are required to set up a business. These assets are considered fixed as they are not consumed or destroyed during the actual production of a good or service but have a reusable value.