Physical capital refers to the stock of equipment and structures that support the production of goods and services. It includes tools, machinery, vehicles, buildings, and other durable assets used in the production process. It does not include monetary reserves or human capital (skills, knowledge, experience, and talent of workers).

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Physical Capital Is

Question 39

Multiple Choice

Physical capital is:

A) the stock of equipment and structures that support the production of goods and services.
B) the skills someone acquires to enhance the available stock of capital.
C) the set of skills, knowledge, experience, and talent that determine the productivity of workers.
D) The monetary reserves a company has on hand.

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