When you say physical capital, it refers to the additional machinery, building, space etc. Therefore an example of changing physical capital is B. Building extra space in the factory . By doing this, you are adding additional physical location in where your employee or worker can work.
What is changing physical capital?
Which of the following is an example of changing physical capital? – hiring more workers to do a job . -building extra space in a factory . -switching to cheaper fuel .
What are 5 examples of physical capital?
Cash, real estate, equipment, and inventory are examples of physical capital. Physical capital values are listed in order of solvency on the balance sheet. The balance sheet provides an overview of the value of all physical and some non-physical assets.
Which is an example of using physical capital to save time money?
| Term Factors of production Definition Land, labor, capital | Term Land Definition Natural gas, coal, trees, water | Term Physical capital Definition Factory building | Term using physical capital to save time and money Definition building extra space in a factory to simplify production |
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Which of the following is an example of the factor of production physical capital?
A factory building is an example of which factor of production? Physical capital. Human-made objects used to create other goods and services are physical capital.
What are the two types of physical capital?
Physical capital is the variety of inputs required at every stage during production. It includes fixed capital and working capital .
What affects physical capital?
Land, Natural Resources, and Real Estate
These factors include the land or property on which factories, shipping facilities, and stores are built. Natural resources that come out of the ground, such as the corn needed to make tortilla chips or the iron ore used to make steel, also fall into this category.
Which of the following is the best example of physical capital?
| Question Answer | which of the following is the best example of physical capital ? a truck for a delivery company | when making a decision, the next best alternative is called the opportunity cost |
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What is physical capital explain with example?
Physical capital refers to assets, such as building, machinery, and vehicles , which are owned and employed by an organisation. Physical capital constitutes one of the factors of production other than land and labour. The assets constitute fixed capital means that they are not consumed in the process of production.
What is physical capital maintenance?
The definition of physical capital maintenance implies that a company only earns a profit if its productive or operating capacity at the end of a period exceeds the capacity at the beginning of the period , excluding any owners’ contributions or distributions.
Are all the alternatives we give up when we make a decision?
In most trade-offs, one of the rejected alternatives is more desirable than the rest. The most desirable alternative somebody gives up as a result of a decision is the opportunity cost .
Who owns the factors of production?
In a free-market (capitalist) economy, individuals own the factors of production: Privately owned businesses produce products. Consumers choose the products they prefer causing the companies that product them to make more profit.
Which of the following is the best example of a public good?
Examples of public goods include fresh air, knowledge, lighthouses , national defense, flood control systems, and street lighting. Streetlight: A streetlight is an example of a public good. It is non-excludable and non-rival in consumption.
What are 4 factors of production?
Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship . The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.
What are the 7 factors of production?
= h [7]. In a similar vein, Factors of production include Land and other natural resources, Labour, Factory, Building, Machinery, Tools, Raw Materials and Enterprise [8].
What are the 5 factors of production?
The factors of production are land, labor, capital, and entrepreneurship .
