Practicing Success
Which of the following statements relate to physical capital ? A. It is intangible B. It is tangible C.It creates only private benefit D. Owner of physical capital needs to be present at the place where it is used E. It can easily be sold in the market Choose the correct answer from the options given below : |
A and B only B and C only A, D and E only B, C and E only |
B, C and E only |
The correct answer is option (4) : B, C and E only B. It is tangible (Physical capital refers to tangible assets such as machinery, equipment, buildings, etc.) C. It creates only private benefit (Physical capital can generate private benefits for its owner.) E. It can easily be sold in the market (Physical capital can be bought and sold in the market as it has tangible value.) A. It is intangible: This is incorrect. Physical capital refers to tangible assets used in production. D. Owner of physical capital needs to be present at the place where it is used: This is not true. While ownership might involve some oversight, the owner doesn't necessarily need to be physically present for the capital to be used. Machines can be operated by employees, buildings can be rented out, etc. |