Which of the following is not an example of a physical capital?Group of answer choicesFactoryTreeHammerPizza oven
Question
Which of the following is not an example of a physical capital?Group of answer choicesFactoryTreeHammerPizza oven
Solution
The answer is "Tree". Physical capital refers to man-made goods that are used in the production of other goods. These items are tangible and are used to produce other goods and services. In this list, a factory, a hammer, and a pizza oven are all examples of physical capital because they are all man-made and used to produce other goods. A tree, however, is not man-made but is a part of nature, and therefore it is not considered physical capital.
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