Physical capital refers to the stock of equipment and structures that are necessary for the production of goods and services. This includes machinery, buildings, vehicles, and infrastructure. It does not include human skills or knowledge. Therefore, option A is the correct description of physical capital.

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Physical Capital Is

Question 41

Multiple Choice

Physical capital is:

A) the stock of equipment and structures that allow for the production of goods and services.
B) the skills a human being acquires that enhances the available stock of equipment.
C) the set of skills, knowledge, experience, and talent that determine the productivity of workers.
D) All of these describe physical capital.

Correct Answer: