Question

What is Physical capital .What are its different types

Answer 1

Physical capital : It is one of the requirement necessary for crop production . It means a variety of of inputs required at every stage during production . Two items comes under Physical capital , they are :

1 . 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 .

2 . working capital : Raw materials and money at hand are called working capital .