Question

What is physical capital? What are its different tyes? Explain each type.

Answer 1

Physical capital:- It is one of the requirement necessary for crop production. It means a variety of inputs required at every stage during production.

Physical capital is of two type:-

• Fixed capital- It includes tools and machines ranging from simple tools like - farmer's plough and machines like - generators, turbines, computers. Actually tools, machines and buildings can be used in production over many years, and are called fixed capital.
  
• Working capital- Raw materials and money at hand are called working capital.