Which of the following items are considered physical capital?
i. shares of Ford traded on the NYSE
ii. the production line at the Saturn plant in Tennessee
iii. the windshields at the Saturn plant in Tennessee
iv. the salaries paid to Ford executives
A) ii and iii
B) i, ii and iii
C) i and iv
D) i, ii and iv

Question

Quizplus · Accepted Answer

Physical capital refers to tangible assets such as machinery, buildings, and equipment used in production. 
i) Shares of Ford do not represent physical assets, but rather financial ownership in the company.
ii) The production line at the Saturn plant is a physical asset used in production.
iii) The windshields at the Saturn plant are also physical assets used in production.
iv) Salaries paid to executives are not physical assets, but rather a component of labor costs.

Which of the Following Items Are Considered Physical Capital