Match the following:

1-D, 2-A, 3-B, 4-C

There are 4 requirements for producing goods and services. Out of which one is physical capital which means the variety of inputs required at every stage during production. Items that come under physical capital are: Fixed and working capital which are explained as follows:

• Fixed capital: Any kind of real, physical asset that is used repeatedly in the production of a product. Tools, machines, buildings can be used in production over many years, and are called fixed capital.
• Working capital: The capital of a business which is used in its day-to-day trading operations like raw materials and money in hand.

You will need knowledge and enterprise to be able to put together land, labor and physical capital and produce an output either to use yourself or to sell in the market.