An example of physical capital is
A) a well-run government.
B) a well-developed banking system.
C) skilled labor.
D) paved roads.
E) educated teachers.

Question

Quizplus · Accepted Answer

Paved roads are an example of physical capital because they are a tangible asset that is used to produce goods and services. Physical capital consists of man-made goods that assist in the production process - in this case, paved roads are an infrastructure investment that improves transportation efficiency and accessibility, which can increase productivity and output for businesses and individuals. Options A, B, C, and E are not physical capital, but rather fall into the categories of government, financial, human, and social capital, respectively.

An Example of Physical Capital Is