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Physical capital refers to any manufactured one that is applied production, such as machinery, buildings, or vehicles, which is one of the three primary factors of production (the other two are land and labor/workforce).
Physical capital: Can be of fixed capital and working capital.
a. fixed capital: Tools, machines, buildings etc.. they may range from very simple tools such as farmers plough to sophisticated machines to generators, computers etc..b. working capital: Raw materials and money in hand come under this category. Ex. Yarn used by weaver and clay used by potter. Some money is always required during production to make payments and buy other necessary items.
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∙ 11y ago
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Road, buildings, vehicles, airways, waterways, school, office etc....
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