Which of the following is an example of physical capital

Asked by admin @ 09/10/2021 in Business viewed by 421 People

Which of the following is an example of physical capital in an economy?

A. A cargo plane
B. A pilot
C. A traveler
D. A mechanic

Answered by admin @ 09/10/2021

Answer:

A. A cargo plane

Explanation:

In Economics, factors of production are used for the manufacturing of goods and services in order to meet the unending needs or requirements of the consumers at a specific price and period of time. The four (4) factors of production are;

I. Land.

II. Labor.

III. Entrepreneurship.

IV. Capital.

Physical capital can be defined as any tangible, artificial goods which are typically used for the production of finished goods or services. Therefore, it comprises of building, computer, machinery or equipment, office utilities, cash, vehicles, etc.

Hence, a cargo plane is an example of physical capital in an economy because it is a tangible, man-made equipment used for the transportation of people or goods from one location to another.

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Asked by maham237 @ 13/01/2021 in Business viewed by 2742 persons

Which of the following is an example of physical capital

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