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1 January, 03:30

Which of the following is an example of an investment in physical capital? A. A firm trains workers to operate new machinery. B. A firm pays for workers to take college classes. C. A chemical firm employs chemists to develop new chemicals. D. A firm purchases new equipment for a manufacturing process.

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  1. 1 January, 04:43
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    Answer: Option (D) is correct.

    Explanation:

    According to the economists, physical capital refers to a factor of production that is used in the production of goods. Physical capital includes tangible goods and man made products that assist in the production of new products. Examples of physical capital are as follows:

    (1) Machinery

    (2) Computer

    (3) Building

    (4) Warehouse

    All these are considered as the physical capital that a firm used in the production process.

    Therefore, if a firm purchases an equipment for their production, is considered as a physical capital.
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Home » Business » Which of the following is an example of an investment in physical capital? A. A firm trains workers to operate new machinery. B. A firm pays for workers to take college classes. C. A chemical firm employs chemists to develop new chemicals. D.
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